RCL Foods Reports Significant Growth in Half-Year Earnings
RCL Foods reported a 38.8% increase in half-year earnings, driven by strong performance in groceries and baking segments. Headline earnings per share rose to 109.4 cents, while EBITDA increased by 25.1% to 1.5 billion rand. Revenue grew by 5.4% to 13.6 billion rand. The company declared a dividend of 20 cents per share.
RCL Foods, a prominent South African food producer, announced a remarkable 38.8% increase in half-year earnings attributed to robust performance in its groceries and baking divisions. The company reported that headline earnings per share from continuing operations surged to 109.4 South African cents, up from a restated 78.8 cents in the same period last year.
Moreover, RCL Foods achieved a significant 25.1% rise in EBITDA, amounting to 1.5 billion rand (approximately $80.52 million), bolstered by effective cost management and enhanced production efficiencies. Total revenue also experienced a 5.4% increase, reaching 13.6 billion rand, driven by stronger results in its grocery sector, baking unit, and sugar business.
The company’s performance occurred against the backdrop of a relatively stagnant South African food market. CEO Paul Cruickshank noted that the absence of power cuts and favorable commodity prices enabled RCL Foods to manage price increases judiciously while providing relief to economically constrained consumers.
In light of its strong financial performance, the board has declared a dividend of 20 South African cents per share for this period, an improvement from the previous period when no dividend was declared.
In conclusion, RCL Foods demonstrated significant financial growth with a 38.8% rise in half-year earnings, supported by its groceries and baking sectors and a favorable economic context. The company’s effective cost management strategies and revenue increases underline its resilience amidst a challenging market. The declared dividend reflects a positive outlook for stakeholders.
Original Source: www.tradingview.com
