RCL Foods profit drops 46% as sugar levy, feed costs weighs.
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GUEST - Paul Cruickshank - Chief Executive Officer of RCL Foods
RCL Foods, which is majority-owned by Johann Rupert's Remgro, reported that full-year earnings growth fell by more than 40% as it battled input costs in its poultry business and saw load shedding severely hit production in its pet food segment.
The company said it had "weathered a tremendously difficult 12 months" with unrecovered cost pressure in its Rainbow Chicken business and the impact of load shedding casting a pall over the overall performance.
Specifically, within the Rainbow unit, higher revenue driven by both higher volumes and prices were not enough to offset the "severe impacts of high feed costs, failing municipal infrastructure and load shedding", resulting in a 74.9% decline in underlying earnings before interest, tax, depreciation and amortisation.
RCL Foods, which is majority-owned by Johann Rupert's Remgro, reported that full-year earnings growth fell by more than 40% as it battled input costs in its poultry business and saw load shedding severely hit production in its pet food segment.
The company said it had "weathered a tremendously difficult 12 months" with unrecovered cost pressure in its Rainbow Chicken business and the impact of load shedding casting a pall over the overall performance.
Specifically, within the Rainbow unit, higher revenue driven by both higher volumes and prices were not enough to offset the "severe impacts of high feed costs, failing municipal infrastructure and load shedding", resulting in a 74.9% decline in underlying earnings before interest, tax, depreciation and amortisation.
