Earnings at Rhodes Food Group have been gnawed away by the stronger rand and weaker global demand in the 10 months to end-July. Consequently, a trading update issued by the conglomerate on Tuesday pencilled in a drop of between 17% and 27% in headline earnings to between R214m and R243m for the financial year to end-September. This would translate into diluted headline earnings (taking into account new shares issued to raise fresh capital) of between 83c a share and 96c a share. This would be 25% to 35% lower than the previous financial year. The announcement caused the share price to plummet more than 13% in mid-afternoon trading on Tuesday. Rhodes reported turnover growing 9.9% in the first 10 months of the financial year on continued momentum in SA and the rest of Africa. The company said turnover from SA and Africa rose 21%, with organic growth of 13.9%. This segment also benefited from the recent acquisitions of Pakco and Ma Baker, which were consolidated for four months of the...
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