RESTRUCTURING PAYS OFF
RCL stock leaps on earnings update
The Remgro-controlled company benefits from cheaper chicken feed and a revised business model
RCL Foods, the consumer brands conglomerate that owns poultry producer Rainbow Chickens, delivered a nourishing trading update on Monday. RCL’s share price initially spiked more than 8% to R18.40 before market enthusiasm tempered to end the trading day 3.47% up at R17.59. The company, which is controlled by Remgro, pencilled in headline earnings of 69.5c to 79c per share for the six months to end-December. If once-off items recorded in the corresponding period last year were excluded, RCL’s interim headline earnings would be 29% to 43% higher. RCL indicated that the improvement in the interim results was due largely to an improved performance from the restructured Rainbow Chicken business.
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