RCL FOODS LIMITED - Trading statement six months ended December 2018

Trading statement – six months ended December 2018

RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000179438
Share Code: RCL
("RCL FOODS" or "the Group")

TRADING STATEMENT – SIX MONTHS ENDED DECEMBER 2018

Shareholders are advised that RCL FOODS’ headline earnings per
share ("HEPS") for the six months ended December 2018 (“current
period”) is expected to be between 53.0 cents (-28.9%) and 57.0
cents (-23.5%) when compared to the reported HEPS of 74.5 cents
for the six months ended December 2017 ("corresponding period").

Earnings per share ("EPS") for the current period is expected to
be between 65.0 cents (-15.3%) and 69.0 cents (-10.0%) when
compared to the reported EPS of 76.7 cents for the corresponding
period. EPS for the current period includes a profit from farm
sales and is therefore expected to be higher than HEPS.

The earnings decline was largely attributable to the difficult
trading conditions experienced in the Sugar and Chicken business
units over the past six months.

The Sugar business unit’s result is expected to be significantly
down on the corresponding period, as dumped imports and lower
domestic demand resulted in a higher proportion of export volumes
at depressed international prices.

The Chicken business unit’s result is also expected to be down on
the corresponding period. The decline is largely a result of
continued high levels of imports driving retail prices lower, the
lingering impact of the Listeriosis crisis on the Rainbow brand
and rising feed input costs. Chicken’s result includes a profit
from dormant farm sales of R105.0 million following the decision
to downsize the KZN operations.

Pleasingly our Grocery brands continue to perform strongly.

The Group’s financial results for the current period are expected
to be released on SENS on 4 March 2019.

The financial information on which this trading statement is based
has not been reviewed and reported on by the Group’s external
auditors.

Durban
14 February 2019

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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