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, 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

Nestle to brew high-end coffee with Blue Bottle buy
15/09/2017 - 10:26
Nestle has bought a majority stake in California-based Blue Bottle Coffee, marking a first step by the packaged coffee leader into the hipster world of speciality bars that serve high-end, single-origin and cold brewed coffees.

Top 5 Strategies for selling to Millennials
11/09/2017 - 10:34
Capturing and keeping the attention of Millennial shoppers is the holy grail of brands and retailers these days. At 80 million strong, Millennials represent one-quarter of the nation’s population and starting this year, they will spend more than $200 billion annually, estimates Ad Age.

US Agoa poultry exporters struggle with SA’s empowerment provisos
30/08/2017 - 10:37
US poultry producers nearly reached their full 65,000 ton quota of exports to SA under the Africa Growth and Opportunity Act (Agoa) in the year to end-March.

New venture may shake up shopping malls
28/08/2017 - 11:13
Steinhoff Retail Africa, along with partner Shoprite, is set to disrupt the retail market, if they implement plans to own shopping centres.

Sandton City introduces five stylish performancewear brands
24/08/2017 - 13:59
Athleisure, which embraces performancewear as everydaywear, is trendsetting and growing in prominence with no signs of slowing down. South Africans will soon be kitted out more stylishly than ever before, with five exciting athleisure and activewear brands opening new stores at Sandton City.