RCL FOODS – FINAL RESULTS JUNE 2015
Revenue from continuing operations jumped to R23.4 billion (R22.4 billion). Operating profit shot up to R1.5 billion (R778.6 million). Profit attributable to equity holders was R848.1 million (R428.4 million). Furthermore, headline earnings per share from continuing operations came in at 112.2 cents per share (45.1 cents per share).
The directors have resolved to declare a final gross cash dividend (number 81) of 22 cents per share for the period ended 30 June 2015.
The burden of a constrained market, together with the expectation of rising interest rates, labour demands, electricity disruptions and continuing high unemployment, is expected to hamper any sustainable improvement in consumer spending. These issues will have an impact across the segments in which the Group operates. . The Consumer division”s new management structure and focused investment behind its brands is expected to yield positive financial results in 2016. The poultry industry is still facing uncertainty following the recent decision with respect to duty free USA imports, while the injection cap issue remains unresolved. Improvements from the new chicken business model are expected to moderate in the new financial year off a substantially higher base.
The Sugar & Milling divisions use of irrigation will largely shield it from the current drought conditions experienced by the KZN sugar producers, however the short-term outlook for global sugar pricing is negative. Vector expects to commission new capacity in the latter half of the year, allowing the take-on of potential new customers. The continuing good performance of food service customers is expected to help offset negative economic factors. RCL Foods expects that cash flows in the business will remain robust against the backdrop of a significant capital expenditure investment programme. It will allow RCL Foods to continue plans to explore opportunities in strategic growth markets in the food sector in South Africa and sub-Saharan Africa in line with its long-term aspirations