JOHANNESBURG (Reuters) -South African food producer RCL Foods reported a 38.8% rise in half-year earnings on Monday, helped by gains in its groceries and baking businesses.
RCL Foods, whose brands include Selati sugar and Sunbake bread, said headline earnings per share from continuing operations rose to 109.4 South African cents in the six months ended December from a restated 78.8 cents a year earlier.
Its earnings before interest, taxes, depreciation, amortisation and impairments (EBITDA) jumped 25.1% to 1.5 billion rand ($80.52 million), supported by cost savings and improved production efficiencies.
The company’s revenue rose 5.4% to 13.6 billion rand, driven by improved results in its groceries business and baking unit, along with a strong performance in its sugar business.
This was achieved in the context of a South African food market that remains relatively subdued.
The absence of power cuts and some welcome price relief in certain commodities, have allowed the food producer “to judiciously manage price increases and provide some welcome relief to cash-strapped consumers,” CEO Paul Cruickshank said.
The board declared a dividend of 20 South African cents per share for the period, after not declaring one in the previous period.
($1 = 18.6279 rand)
(Reporting by Nqobile Dludla; Editing by Jamie Freed and Varun H K)
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