Ma Baker and Pakco acquisitions lift Rhodes’s revenue, but eat into profits
The company’s canned fruit export business suffered from higher prices due to the drought in the Western Cape and the stronger rand
Acquiring Ma Baker for R212m cash and Pakco for 17-million shares helped Rhodes Food Group grow its top line, but hurt profits.Rhodes reported on Tuesday morning its interim revenue for the six months to end-April grew 17% to R2.5bn. Pakco and Ma Baker contributed a combined R209m to the group’s revenue, the results statement said.But net profit fell 35% to R81m from R125m in the matching period due to the cost of servicing debt and integrating the acquisitions into its existing businesses.Headline earnings per share (HEPS) declined 39% to 31.4c due to the dilution caused by the issue of shares to pay for Pakco.Rhodes does not pay an interim dividend.Its canned fruit export business suffered from higher prices due to the Western Cape’s ongoing drought and the stronger rand."The Pakco brand portfolio was relaunched in March with extensive product innovation, new pack formats and refreshed packaging designs across the Bisto, Hinds, Pakco and Southern Coating brands," Rhodes said in it...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.