Woes continue for RCL Foods as interim earnings halve
Excluding its chicken business, the group’s interim results would show trading profit growth for the six months to end-December, the firm says
RCL Foods warned shareholders on Tuesday that its interim headline earnings halved. The group, which was created by Rainbow Chicken acquiring Foodcorp, said its diversification into sugar and backing products had helped it escape some of the woes of the South African poultry industry. Excluding its chicken business, the group’s interim results scheduled for release on February 23 would show trading profit growth for the six months to end-December, the company said in its trading statement. But "the severe challenges faced by the local chicken industry due to dumped imports and high feed input costs" would result in its headline earnings per share being in the range of 40c to 55c, or 54% to 37% lower than in the matching six months in 2015. RCL’s share price fell 2.3% to R12.60 after the announcement on Tuesday. RCL said the drop in earnings was partly due to a once-off accounting gain in the corresponding period, when a R163.3m provision for a potential tax dispute arising from its ...
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