RCL expects lower full-year profit due to once-off costs
RCL Foods expects full-year headline profit to drop by up to 41.6%, weighed down by once-off items, which include restructuring costs relating to the company’s decision to reduce chicken volumes. Earlier in 2017, RCL downsized its chicken business unit in a move that laid off about 1,350 workers at its Hammarsdale plant, in KwaZulu-Natal. The food producer said on Thursday that headline earnings a share would be between 57.5c and 67.5c, down from 98.5c a year-ago. Stripping out once-off costs, normalised headline earnings a share are expected to rise by up to 16% from a year ago. The performance is attributable to a recovery in the sugar business unit, as well as a turnaround within its Millbake business unit. The share price was off 2.45% to R15.15 in late trade on the JSE, valuing the company at about R14.5bn.
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