Advertise with fastmoving.co.za
 
 

RCL Foods expects a pluckier performance from its poultry business.
RCL Foods expects a pluckier performance from its poultry business.

Revised business plan pays off at RCL

FMCG SUPPLIER NEWS

By Marc Hasenfuss - Aug 30th 2017, 13:32

RCL Foods, which owns several leading brands, is expecting a pluckier performance from its struggling poultry business. 

Speaking at the release of its results on Tuesday for the year to June 30, RCL finance director Rob Field said efforts to focus the poultry division away from low-margin commodities into quick-service restaurant supply were yielding positive results.

More than half of the company’s poultry volumes were earmarked for the quick-service restaurant industry. RCL was committed to the chicken business, he said. Its poultry operations were substantial in spite of cutbacks, with 24-million chickens at more than 180 farms.

CEO Miles Dally said the chicken business was expected to achieve big improvements in profitability in the year ahead, driven by the revised business model and lower input costs.

Overall, RCL Foods reported static revenue at R25bn, while headline earnings rose 8% to R593m. But cash generated by operations rose 57%, to R2.3bn — underpinning a 33% hike in the final dividend to 20c a share. This means an unchanged dividend payout of 30c a share.

Looking ahead, Dally said economic growth and consumer spending would continue to be lacklustre. "On the positive side, the record maize crop, adequate rainfalls, as well as an improved supply of other crops, should restore margins and contribute to welcome price relief for consumers."
 

Read more about: brands | poultry | rcl foods

Related News

SA poultry industry wants hefty increase in tariffs to protect local industry
17/01/2019 - 13:20
The South African poultry industry has defended its application for a hike in import tariffs of frozen chicken portions to 82%, saying the cheap chicken imports mainly from Brazil hurt the competitiveness of local producers.

The era of post-modern marketing
15/01/2019 - 14:05
It’s the age of post-modern marketing when creativity and storytelling are combined with modern technology and a focus on human behaviour.

Mergers & acquisitions: How to manage growth with the right brand architecture strategy
14/01/2019 - 13:30
According to Reuters, there were over 50,000 merger & acquisition (M&A) deals announced in 2018. By May, R26.6-trillion had been spent on M&As, more than seven times SA’s annual GDP.

Why mobile is the gatekeeper of brand loyalty today
19/12/2018 - 10:33
Achieving long-term brand loyalty has become brutally difficult for South African retailers. Mobile represents an unparalleled opportunity for savvy retailers to reach customers in more personalised, efficient and powerful ways – paving the way for a new era of data-driven brand loyalty.

Affiliate marketing in numbers: What is it?
18/12/2018 - 11:37
Affiliate marketing is a great way to connect with other companies and brands to establish a mutually beneficial relationship. It's a great way to monetize your website and earn a few extra bucks easily. Affiliate marketing uses website traffic from one website to generate clicks and sales for the affiliate brand. The site who posts the affiliate link will then get a percentage of the income generated from those clicks and sales.