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

Heinz Foods SA to become wholly owned subsidiary of Pioneer
07/11/2017 - 08:52
US multinational Kraft Heinz is selling its 50.1% stake in its South African operations to joint-venture partner Pioneer Foods for an undisclosed amount.

How brand giant Unilever uses consumer-generated content
27/10/2017 - 09:12
For a corporation as huge as Unilever - the firm has 400 brands and turned over €52.7 billion last year - it’s hard to imagine more customer reviews of its mayonnaise or cotton bud products making a huge difference to its bottom line.

Astral Foods share rises after trading statement predicts doubled earnings
16/10/2017 - 13:10
Poultry producer Astral Foods expects to report doubled earnings thanks to higher prices and no further bird flu outbreaks.

Sovereign contains outbreak of bird flu
09/10/2017 - 10:10
An avian influenza outbreak at a Sovereign Foods facility had been contained to the layer house where it was initially identified, the poultry producer told shareholders on Friday.

Astral sharpens its focus on poultry operations
04/10/2017 - 10:26
Southern African integrated poultry producer Astral Foods is ridding itself of a noncore asset in an effort to sharpen its focus on its poultry business.