RCL flags profit drop due to special sugar levy
Sugar industry uncertainty puts squeeze on food producer
Food and logistics group RCL Foods has flagged a drop in profit in its next annual results as a special levy raised by the SA Sugar Association (Sasa) hurt its sugar business unit, load-shedding bogged down performance and feed costs in its Rainbow Chicken division could not be recovered.
According to the producer of brands such as Selati sugar, Nola and Yum Yum, the local sugar industry is in a “state of significant uncertainty” since the start of business rescue proceedings at sugar giant Tongaat Hulett and the Gledhow Sugar Company...
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