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RCL FOODS LIMITED - Group financial results and cash dividend declaration for the six months ended December 2020

Release Date: 01/03/2021 07:05
Code(s): RCL     PDF:  
Wrap Text
Group financial results and cash dividend declaration for the six months ended December 2020

(Incorporated in the Republic of South Africa)
ISIN: ZAE000179438
Share Code: RCL
("RCL FOODS" or "the Company" or "the Group")


  -   Revenue up 10.5% to R15,7 billion
  -   Earnings before depreciation, amortisation and impairment
      (EBITDA) down 3.1% to R1 130,0 million
  -   Underlying* EBITDA up 18.0% to R1 344,8 million
  -   Headline earnings per share (HEPS) up 12.0% to 59.7 cents
  -   Underlying* HEPS up 28.0% to 77.1 cents
  -   Earnings per share (EPS) down 1.6% to 61.6 cents
  -   Underlying* EPS up 30.7% to 79.1 cents
  -   Interim dividend declared of 15.0 cents per share, in line
      with prior period

*The underlying view of the results excludes material once-offs
and accounting adjustments. Refer to the "Reconciliation between
unadjusted and underlying results" section provided as part of the
full announcement for further details.

RCL FOODS is proud to present a pleasing set of interim results,
with the diversity of its portfolio providing resilience amidst
the COVID-19 pandemic. Noteworthy contributors to the improved
results came from the Sugar, Baking and Vector Logistics segments,
translating into a 28.0% increase in underlying headline earnings
per share.

The Food Division delivered a robust set of results. Sugar’s
continued improvement was mainly due to higher sales volumes and
prices, a successful shift in sales mix towards higher-priced
local market sales coupled with substantial cost savings realised
in agriculture and supply chain. Baking delivered a substantial
improvement on the prior period, underpinned by strong demand and
a turnaround at the Gauteng bakeries. Groceries delivered an
acceptable result overall considering the continued negative
impact of the lockdown restrictions on Pies volumes.

The Chicken Division’s performance was negatively impacted by
continued challenges in agriculture as well as R100,7 million
supply chain relief and additional storage costs associated with
the COVID-19 pandemic.

Vector Logistics’ results for the current reporting period include
the take-on of new principals due to the Imperial Cold Chain (ICL)
business acquisition, whereas these principals were only included
for one month in the prior period. Despite the continued impact of
COVID-19, Vector delivered underlying growth in the current period
mainly due to the take-on of new business and consolidation of the
duplicate networks.

EPS for the comparative period was higher than HEPS largely due to
the inclusion of a gain on bargain purchase by Vector Logistics of
certain of the ICL assets, which was excluded from the calculation
of HEPS.


Notice is hereby given that the directors have declared an interim
gross cash dividend (number 92) of 15.0 cents (12.0 cents net of
dividend withholding tax) for the six months ended December 2020.

The dividend has been declared from income reserves.

A dividend withholding tax of 20% will be applicable to all
shareholders who are not exempt.

The issued share capital at the declaration date is 959 004 383
ordinary shares. The company’s income tax reference number is

The salient dates for the dividend will be as follows:

Publication of declaration data                Monday, 1 March 2021
Last day of trade to receive a dividend      Tuesday, 20 April 2021
Shares commence trading "ex" dividend      Wednesday, 21 April 2021
Record date                                   Friday, 23 April 2021
Payment date                                  Monday, 26 April 2021

Share certificates may not be dematerialised or rematerialised
between Wednesday, 21 April 2021 and Friday, 23 April 2021, both
days inclusive.

The contents of this short-form announcement are the
responsibility of the board of directors of the Group.

Shareholders are advised that this short-form announcement
represents a summary of the information contained in the full
announcement and does not contain full or complete details as
published on the RCL FOODS website, on 1 March

Any investment decisions by investors and/or shareholders should
be based on a consideration of the full announcement as a whole
and shareholders are encouraged to review the full announcement,
which is available for viewing at
or on the Group’s website set out above. Copies of the full
announcement may be inspected at the Group’s registered office and
offices of its sponsor at no charge, during office hours of 08h00
to 16h30, Monday to Friday. Investors and/or shareholders may also
request copies of the full announcement by contacting the company
secretary at or on 087 362 8501.

1 March 2021

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 01-03-2021 07:05:00
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