Weaker rand boosts Rhodes Food Group
Sales in SA and the rest of Africa also grew strongly, though lower-margin products were in favour among embattled local consumers
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, grew 8.8% in its year to end-September boosted by a weaker rand and exports of higher-value products to the US.
Sales in SA and the rest of Africa also grew strongly, the company said, though lower margin products were in favour among SA’s embattled consumers.
International turnover benefited from a 7.7% depreciation against the group’s major traded currencies, it said, as well as higher-margin goods such as fruit snacks.
Margins in the group’s regional business were under some pressure, with the lower-margin long-life category growing 9.1% while fresh-food turnover grew 6.7%.
The company expects “strong” profitability for the period, with headline earnings expected to rise 30%-45% compared with the R159.1m reported previously.
The group’s share price was 4.42% to R16.08 on Monday, paring its year-to-date loss to 10.22%.