Rainbow results for the 6 months ended Sep 99
High stock levels, brought about by the importation of cheaper products, high interest rates and depressed markets , continued throughout the period impacting negatively on results. Turnover of R1.1bn (R1.064bn), an operating loss of R24.1m (R17.9m profit) and an attributable loss of R40.7m (R7.5m) were reported. Headline losses rose to 17cps(4.2cps – which takes the five for one consolidation into account) In spite of an 11% decrease in the selling price of goods, the group managed a marginal improvement in turnover – attributed to higher production and sales volumes and the ongoing restructuring programme. Although stock levels had normalised by the end of September 99, local economic conditions had not jet improved enough to ensure a turnaround in the second half. Of continued concern was the volatility of international markets and lower priced imports which could result in dumping by the local poultry industry.