Rainbow — trading statement
The group”s interim results for the 2013 financial year (for the 6 month period ended 31 December 2012) are due to be released on SENS on Tuesday 19 February 2013.
Rainbow shareholders were advised that the group expects its Earnings Per Share and Headline Earnings Per Share for the 6 month period ended 31 December 2012 to be between 65% and 85% lower than that of the 6 month period ended 31 December 2011, and between 35% and 55% lower on a pre-IAS39 adjusted basis. The lower than anticipated earnings are mainly a function of the two major issues facing the local poultry industry, namely record levels of imports and escalating feed raw material input costs. The resultant oversupply in the local market has meant that the price of chicken in retail bears little reference to its cost of production, and has resulted in significant reductions in chicken margins.
Transaction costs in relation to Rainbow”s acquisition of an effective 64.2% shareholding in New Foodcorp Holdings (Pty) Ltd. have been recognised to the extent that they are not conditional on the finalisation of all conditions precedent, and consequently the impact on the interim results is not material.