Chickens are seen in a chicken battery. Headline earnings per share of RCL Foods, which owns Rainbow Chicken, fell 2.7% to 53.3c with much of the fall due to accounting changes that bring leases onto the balance sheet. Picture: 123RF/MONTICELLO
Chickens are seen in a chicken battery. Headline earnings per share of RCL Foods, which owns Rainbow Chicken, fell 2.7% to 53.3c with much of the fall due to accounting changes that bring leases onto the balance sheet. Picture: 123RF/MONTICELLO

Higher sugar prices and improved export volumes supported RCL Foods, which owns Rainbow Chicken and Selati Sugar, during its half-year to end-December, though profit fell due to accounting changes, the group said.

Headline earnings per share fell 2.7% to 53.3c with much of the fall due to accounting changes that bring leases onto the balance sheet.

Revenue rose 7.1% to R14.2bn, stemming from higher market pricing and sales volumes in its sugar business.

Underlying headline earnings for the six months ended December 2019 increased 24.1% to R547.7m, RCL Foods said.

Underlying headline earnings exclude material one-off costs, and the accounting changes.

During the period under review the group restructured its business by combining the consumer and sugar & milling divisions into a single food division with the previous eight business units restructured into four new business units — groceries, baking, chicken and sugar.

“The restructuring has established business units that are closely aligned and integrated which provides a solid foundation for creating further synergies, optimising resource allocation and sharpening our strategic focus,” the group said.

gernetzkyk@businesslive.co.za

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