Rhodes Food Group’s turnover rises amid healthy international growth
Business in SA and the rest of Africa rose 8.8% in the period, with fresh foods turnover up 5.8% in the 10 months to end-July
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.
Turnover in SA and the rest of Africa rose 8.8% in the period, with fresh foods turnover up 5.8%, the company said in a trading update on Monday.
Regional long-life turnover grew 10.8% with 6.4% volume growth during the period. Good growth was reported in canned meats, fruit juice and dry foods, with the company reporting market share was gained or maintained across core product categories.
While the company’s regional business was expecting similar turnover in the remaining two months of the financial year, margin expansion is proving challenging in the current macro environment, the company said.
The group said its international operating margin strengthened, with the rand depreciating 9.7% over the period.
The company’s share price was unchanged at R16.98 on Monday morning, having fallen 5.19% so far in 2019.