RFG interim results March 2019
Revenue for the interim period increased to R2.741 billion (2018: R2.507 billion), gross profit rose to R685.3 million (2018: R633.7 million), profit attributable to owners of the company decreased to R80.9 million (2018: R81.1 million), headline earnings per share lowered to 32.1 cents per share (2018: 32.6 cents per share).
The Group anticipates a strong second half performance despite consumer spending being expected to remain under severe pressure in the months ahead.
The focus in the regional segment will continue to be on driving organic growth, growing brand shares and on improving margins. The acquisition of RCL's protein snack business has been completed and integrated into the Group's Western Cape ready meals facility.
The international segment is expected to continue to improve its operating margin in the second half of the financial year. The deciduous fruit production season (canned fruit, pulps and purees) has recently been completed and initial assessments reflect an improvement in the quality of the fruit after being affected by the drought for the past two years. Volumes were, however, slightly lower than the previous year.
Following the completion of the major capital investment programme, the Group is focused on generating returns on the capital invested and extracting benefits to improve margins. Other management priorities are to improve the balance sheet by generating stronger cash flows, a continued focus on working capital management and containing costs in the constrained consumer environment.
Capital investment of R80 million is planned for the second half of the financial year. Key projects include the expansion of warehouse capacity at the fruit juice plant, ongoing development of the new pineapple plantations in Eswatini and the completion of the infrastructure upgrade at Groot Drakenstein.