RCL Foods, a leading South African consumer goods and milling firm funded by South Africa’s richest man Johann Rupert, forecasts a triple-digit percent increase in earnings for the fiscal year that ends June 30, 2024.
The company, which is partially owned by Remgro Limited, which Johann Rupert chairs, declared this week that it anticipates headline earnings per share (HEPS) to increase by more than 100 percent, owing to outstanding results in its main businesses.
RCL Foods anticipates a 102.6 – 112.6 percent increase in HEPS from R0.683 ($0.03) in the previous fiscal year, as reported in their trade statement.
RCL Foods anticipates a large increase in earnings per share (EPS) from overall operations, with predictions ranging from R1.784 ($0.09) to R1.854 ($0.1), reflecting a stunning 157.4 percent to 167 percent growth from the previous year’s R0.693 for fiscal year 2023.
This upward revision surpasses the previously stated 75% growth in headline profits per share (HEPS) for fiscal 2023, highlighting the company’s outstanding financial success.
The improved headline earnings are primarily due to RCL Foods’ legacy business, Rainbow Chicken, and its supermarket sector. The company stated that Selati Sugar contributed to the good performance, particularly in the latter part of the reporting period.
RCL Foods, founded in 1960 as Rainbow Chicken Ltd, is 77% owned by Remgro, which is run by billionaire Johann Rupert. The company, known for trademarks such as Selati sugar, Ouma rusks, and Yum Yum peanut butter, is assessing its portfolio to determine shareholder value.
Rainbow Chicken, which was unbundled and listed as a standalone entity on the Johannesburg Stock Exchange’s main board on July 1, 2024, is expected to deliver underlying earnings before interest, tax, depreciation, amortization, and impairments (EBITDA) of R650 million ($36.21 million) to R690 million ($38.43 million) for the current period.
