RFG eyes improved export performance as SA’s outlook worsens
The food producer sees an almost double-digit rise in revenue but takes a hit from the rand’s depreciation
RFG Holdings, the maker of Bull Brand corned meat and Bisto gravies, expects a recovery of its export performance to lift its second-half profit as it braces for a weak SA economy in which passing on rising costs to consumers will be difficult.
The group receives high margins on its exports of tinned peaches to China, which are considered a premium product. However, because they are considered a premium product they are used in bakeries and coffee shops, which remain affected by Covid-19, even as that country begins easing restrictions, CEO Bruce Henderson said.