Acquisitions play important role in Rhodes’s growth
A string of acquisitions helped Rhodes Food grow its turnover 37.2% to R4.1bn during the year to end September 25. The company said that profit after tax increased by R120m to R290m. The food producer saw an increase in both its fresh and long-life products. Fresh foods sales were up 26.5% while long-life products shot up by 56.7% with juice and canned meat the best-performing. The company also saw increase in sales for Saharan Africa (excluding SA) which jumped 67.3%. The group enjoyed growth in the local market with 73% of turnover coming from SA up from 70% in 2015. Rhodes declared a dividend of 42.2c per share. This follows the maiden dividend of 24.8c declared for the 2015 financial year. The company’s international turnover was up 22.6%, but the group said that trading in internationally markets had been difficult. The company said that price pressure was an issue in certain markets including China. The severe drought and water shortages that SA experienced in 2016 hurt the bu...
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