SENS Headlines
Reviewed condensed consolidated interim results
for the six months ended 1 April 2018

Rhodes Food Group Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2012/074392/06
JSE share code: RFG
ISIN: ZAE000191979

Reviewed condensed consolidated interim results
for the six months ended 1 April 2018

Key features for the six months 

Group turnover up 16.6%

Regional turnover up 19.5%

International turnover up 3.6%

Headline earnings 34.8% lower on weak international results

Diluted HEPS 38.9% down to 31.4 cents

COMMENTARY 

PROFILE 

Rhodes Food Group is a leading producer of fresh, frozen and long life convenience meal solutions for customers and consumers across
South Africa, sub-Saharan Africa and in major global markets. The growing portfolio of market leading brands, which includes Rhodes, Bull
Brand, Magpie, Squish, Bisto, Hinds and Pakco, is complemented by private label product ranges packed for major South African retailers and
international customers. 

TRADING AND FINANCIAL PERFORMANCE

Group turnover for the six months increased by 16.6% to R2.5 billion, with organic growth of 6.9%.

Turnover in the regional segment (South Africa and the rest of Africa) increased by 19.5%, with organic growth of 7.6%. The regional segment
accounted for 84% (2017: 82%) of total revenue.

-  Fresh Foods sales increased by 22.7% (9.3% organic growth) with a strong performance from the bakery category driven by product innovation
   and continued good growth in pies, snacking and ready meals.

-  Long Life Foods increased turnover by 17.4% (6.5% organic growth) with the fruit juice category again performing well in a highly competitive
   environment. The group's brands continued to gain market share across core product categories. Growth in the rest of Africa has slowed as the
   impact of the stronger Rand in certain major African markets has made the group's products less price competitive.

The acquisitions of Pakco and Ma Baker, which were not included in the comparable prior period, contributed combined turnover of R209 million.
Pakco has performed ahead of expectations in its first full year in the group while some initial challenges were experienced at Ma Baker. These
have been addressed and the integration has been bedded down.

International turnover increased by 3.6%. While export volumes have recovered the business has been impacted by the increased costs of
canned fruit due to the ongoing drought in the Western Cape and the strengthening of the Rand against the group's trading currencies.

The reporting period comprises 26 trading weeks compared to 27 weeks in the prior period.

The group's gross profit margin was lower at 25.3% (2017: 27.1%) owing mainly to increased costs and the adverse currency impact in the
International business. The regional gross profit margin was impacted negatively by lower margins in the Ma Baker business. The gross profit
margin of the Long Life component of the regional business was maintained at last year's levels.

Operating costs, excluding the impact of the two acquisitions, grew by 9.2%. Depreciation and amortisation increased by R19 million owing to the
higher level of capital expenditure in the past two years and the acquisitions of Pakco and Ma Baker at the end of the prior period. Once-off costs
relating to the Ma Baker integration and the relocation of the snacking plant (formerly Alibaba Foods) to the Groot Drakenstein production facility
also contributed to the increase. 

The group operating margin declined from 9.7% to 6.5%. The regional operating margin reduced from 9.2% to 7.8% owing to the dilution caused
by the Ma Baker business and the once-off costs referred to above. The regional margin on a comparable basis was in line with the prior period.
The weak market for industrial purees, increased canned fruit costs and strengthening currency contributed to the international segment posting
a loss for the first half.

Interest payments were R17.4 million higher at R51.9 million due to the increased capital investment programme and funding for the
Ma Baker acquisition.

Profit after tax declined by 35.1% to R80.9 million with headline earnings 34.8% lower at R82.4 million. Diluted headline earnings per share
decreased by 38.9% to 31.4 cents, in line with the group's trading statement issued on 20 March 2018. The weighted average number of shares
in issue has increased by 15.9 million or 6.7% over the prior six-month period.

The ongoing focus on efficient working capital management is reflected in the increase in net working capital being contained to 7.2%.

Cash generated from operations of R135.8 million was R42.3 million higher than the prior period due to the lower investment in working capital.
The group's net debt to equity ratio increased to 60.4% (2017: 45.2%) owing to the higher level of funding for the capital investment programme. 

The group invested R268 million (2017: R233 million) in capital projects in the first half. Major projects include capacity expansion at the Gauteng
pie and bakery facilities, commissioning a new baked bean production facility, upgrading facilities at Pakco and Ma Baker, and the installation of a
clear juice concentrate plant at the Groot Drakenstein production hub to further vertically integrate the fruit juice operation.

OUTLOOK

Driving organic growth, increasing brand shares and extracting benefits from the recent acquisitions and major projects will be the focus areas
in the regional business. The group will look to maintain momentum in sub-Saharan Africa and benefit from the addition of the Pakco brands to the
Long Life product offering.

The Pakco brand portfolio was relaunched in March with extensive product innovation, new pack formats and refreshed packaging designs across
the Bisto, Hinds, Pakco and Southern Coating brands.

After reporting a loss for the first half, Ma Baker has returned to profitability and is expected to be earnings accretive in the second half.

The international business should benefit in the second half from the sale of lower cost-based industrial products from the 2018 season coming
onto the market as well as a small uplift in foreign selling prices of canned fruit and continued improvement in volumes. However, the operating
margin for the international segment will remain low and a strengthening Rand remains a risk to performance.

The group plans a further R115 million capital investment in the second half of the year. The completion of the current production capacity
expansion and upgrade progamme is a priority to ensure that these projects start generating returns to enhance the group's earnings. Working
capital management remains a focus area to reduce interest costs.

Trading conditions are expected to remain constrained over the remainder of the financial year. While the improving consumer confidence in the
country is positive for growth, it is too early to expect any marked improvement in the regional trading environment.

Any reference to future performance included in this announcement has not been reviewed or reported on by the auditors.  

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 1 April 2018
                                                                                             Reviewed        Reviewed               
                                                                                            Six-month       Six-month        Audited
                                                                                         period ended    period ended     Year ended
                                                                                              1 April         2 April      1 October
                                                                                                 2018            2017           2017
                                                                                 Notes          R'000           R'000          R'000
ASSETS                                                                                                                              
Non-current assets                                                                          2 333 815       1 914 124      2 145 186
Property, plant and equipment                                                        4      1 658 574       1 272 039      1 460 493
Intangible assets                                                                             202 490         164 138        207 282
Goodwill                                                                                      444 857         468 984        457 183
Investment in associate                                                              5          5 740               -              -
Biological assets                                                                              10 760           8 963         10 664
Deferred taxation asset                                                                         2 688               -          9 294
Loans receivable                                                                                8 706               -            270
Current assets                                                                              2 259 795       2 102 438      1 964 903
Inventory                                                                            6      1 393 491       1 320 301      1 144 080
Accounts receivable                                                                           779 390         702 041        767 679
Biological assets                                                                              10 553          18 742         10 553
Loan receivable                                                                                 4 123           3 307          6 170
Taxation receivable                                                                            40 804          10 084         32 193
Foreign exchange contract asset                                                                14 237           8 021              -
Bank balances and cash on hand                                                                 17 197          39 942          4 228
Total assets                                                                                4 593 610       4 016 562      4 110 089
EQUITY AND LIABILITIES                                                                                                              
Capital and reserves                                                                        2 239 771       2 122 716      2 235 865
Share capital                                                                               1 565 509       1 565 509      1 565 509
Equity-settled employee benefits reserve                                                       13 189           5 776          8 779
Accumulated profit                                                                            652 025         541 744        652 326
Equity attributable to owners of the company                                                2 230 723       2 113 029      2 226 614
Non-controlling interest                                                                        9 048           9 687          9 251
Non-current liabilities                                                                       847 135         645 618        877 883
Long-term loans                                                                               650 635         509 374        700 407
Deferred taxation liability                                                                   180 928         126 383        161 711
Employee benefit liability                                                                     15 572           9 861         15 765
Current liabilities                                                                         1 506 704       1 248 228        996 341
Accounts payable and accruals                                                                 737 597         683 482        534 590
Employee benefits accrual                                                                      50 134          75 707         75 324
Current portion of long-term loans                                                            237 327         150 117        218 831
Taxation payable                                                                                  258               -          2 732
Bank overdraft                                                                                481 388         338 922        158 077
Foreign exchange contract liability                                                                 -               -          6 787
Total equity and liabilities                                                                4 593 610       4 016 562      4 110 089

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the six-month period ended 1 April 2018
                                                                                              Reviewed         Reviewed             
                                                                                             Six-month        Six-month      Audited
                                                                                          period ended     period ended   Year ended
                                                                                               1 April          2 April    1 October
                                                                                                  2018             2017         2017
                                                                                                 R'000            R'000        R'000
Revenue                                                                                      2 507 375        2 150 737    4 593 317
Cost of goods sold                                                                         (1 873 723)      (1 567 317)  (3 355 146)
Gross profit                                                                                   633 652          583 420    1 238 171
Other income                                                                                    36 275           41 017       54 480
Operating costs                                                                              (507 193)        (416 735)    (885 844)
Profit before interest and taxation                                                            162 734          207 702      406 807
Interest paid                                                                                 (51 855)         (34 462)     (84 836)
Interest received                                                                                   93               22          386
Profit before taxation                                                                         110 972          173 262      322 357
Taxation                                                                                      (30 107)         (48 616)     (87 566)
Profit for the period                                                                           80 865          124 646      234 791
Profit attributable to:                                                                                                           
Owners of the company                                                                           81 068          123 931      234 512
Non-controlling interest                                                                         (203)              715          279
                                                                                                80 865          124 646      234 791
Other comprehensive income                                                                                                        
Items that will not be reclassified subsequently to profit or loss                                   -                -            1
Remeasurement of employee benefit liability                                                          -                -            2
Deferred taxation effect                                                                             -                -          (1)
Total comprehensive income for the period                                                       80 865          124 646      234 792
Total comprehensive income attributable to:                                                                                        
Owners of the company                                                                           81 068          123 931      234 513
Non-controlling interest                                                                         (203)              715          279
                                                                                                80 865          124 646      234 792
Earnings per share                                                          (cents)               32.1             52.4         95.9
Diluted earnings per share                                                  (cents)               30.9             50.4         92.4

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six-month period ended 1 April 2018
                                                                        Equity-settled                                             
                                                                              employee
                                                                Share         benefits    Accumulated   Non-controlling            
                                                              capital          reserve         profit          interest        Total
                                                                R'000            R'000          R'000             R'000        R'000
Balance at 25 September 2016 - audited                        720 205            2 773        524 948             8 972    1 256 898
Issue of ordinary share capital                               845 304                -              -                 -      845 304
Total comprehensive income for the period                           -                -        123 931               715      124 646
Recognition of share-based payments                                 -            3 003              -                 -        3 003
Treasury shares dividends received                                  -                -            475                 -          475
Dividend paid                                                       -                -      (107 610)                 -    (107 610)
Balance at 2 April 2017 - reviewed                          1 565 509            5 776        541 744             9 687    2 122 716
Total comprehensive income for the period                           -                -        110 303             (436)      109 867
Recognition of share-based payments                                 -            3 003              -                 -        3 003
Treasury shares dividends received                                  -                -            279                 -          279
Balance at 1 October 2017 - audited                         1 565 509            8 779        652 326             9 251    2 235 865
Total comprehensive income for the period                           -                -         81 068             (203)       80 865
Recognition of share-based payments                                 -            4 410              -                 -        4 410
Treasury shares dividends received                                  -                -            350                 -          350
Dividend paid                                                       -                -       (81 719)                 -     (81 719)
Balance at 1 April 2018 - reviewed                          1 565 509           13 189        652 025             9 048    2 239 771

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six-month period ended 1 April 2018
                                                                                              Reviewed        Reviewed               
                                                                                             Six-month       Six-month       Audited
                                                                                          period ended    period ended    Year ended
                                                                                               1 April         2 April     1 October
                                                                                                  2018            2017          2017
                                                                                                 R'000           R'000         R'000
Cash flows from operating activities                                                                                                
Operating cash flows before working capital changes                                            239 732         257 567       532 420
Working capital changes                                                                      (103 978)       (164 122)     (185 306)
Cash generated from operations                                                                 135 754          93 445       347 114
Net interest paid                                                                             (51 766)        (37 010)      (86 150)
Taxation paid                                                                                 (16 348)       (100 438)     (139 023)
Net cash inflow/(outflow) from operating activities                                             67 640        (44 003)       121 941
Cash flows from investing activities                                                                                                
Purchase of property, plant and equipment                                                    (268 475)       (233 258)     (486 946)
Proceeds on disposal of property, plant and equipment                                            4 865             269         1 478
Acquisition of subsidiaries and businesses less net cash acquired                                    -       (180 477)     (207 297)
Loan receivable advanced                                                                       (3 273)           (307)       (3 732)
Loans receivable repaid                                                                            246               -         1 471
Dividend paid                                                                                 (81 719)       (107 610)     (107 610)
Treasury shares dividend received                                                                    -             475           475
Net cash outflow from investing activities                                                   (348 356)       (520 908)     (802 161)
Cash flows from financing activities                                                                                               
Issue of ordinary share capital                                                                      -         648 304       648 304
Loans raised                                                                                    75 589         300 000       621 000
Loans repaid                                                                                 (105 215)       (495 492)     (556 742)
Government grant received                                                                            -           2 742         3 432
Net cash (outflow)/inflow from financing activities                                           (29 626)         455 554       715 994
Net (decrease)/increase in cash and cash equivalents                                         (310 342)       (109 357)        35 774
Cash and cash equivalents at beginning of the period                                         (153 849)       (189 623)     (189 623)
Cash and cash equivalents at end of the period                                               (464 191)       (298 980)     (153 849)

CONDENSED CONSOLIDATED SEGMENTAL REPORT
for the six-month period ended 1 April 2018

PRODUCTS AND SERVICES FROM WHICH REPORTABLE SEGMENTS DERIVE THEIR REVENUES

Information reported to the chief operating decision-maker for the purposes of resource allocation and assessment of segment performance
focuses on the types of goods or services delivered or provided, and in respect of the 'regional' and 'international' operations. The information is
further analysed based on the different classes of customers. The executive management of the Group have chosen to organise the Group around
the difference in geographical areas and operate the business on that basis.

Specifically, the Group's reportable segments under IFRS 8: Operating Segments are as follows:

-  Regional
-  International

SEGMENT REVENUES AND RESULTS

The following is an analysis of the Group's revenue and results by reportable segment.

                                                                                                       Segment revenue
                                                                                       Reviewed             Reviewed                
                                                                                      Six-month            Six-month         Audited
                                                                                   period ended         period ended      Year ended
                                                                                        1 April              2 April       1 October
                                                                                           2018                 2017            2017
                                                                                          R'000                R'000           R'000
Regional                                                                                                                            
Fresh products sales                                                                    844 955              688 546       1 529 291
Long life products sales                                                              1 251 622            1 065 693       2 151 307
                                                                                      2 096 577            1 754 239       3 680 598
International                                                                                                                       
Long life products sales                                                                410 798              396 498         912 719
Total                                                                                 2 507 375            2 150 737       4 593 317

                                                                                                         Segment profit
Regional                                                                                164 322              161 779         358 254
International                                                                           (1 348)               49 930          57 553
Total                                                                                   162 974              211 709         415 807
Impairment loss                                                                               -                    -         (3 321)
Acquisition costs                                                                         (240)              (4 007)         (5 679)
Interest received                                                                            93                   22             386
Interest paid                                                                          (51 855)             (34 462)        (84 836)
Profit before taxation                                                                  110 972              173 262         322 357

                                                                                                      Segment depreciation
Regional                                                                                 51 591               38 685          92 435
International                                                                            13 844               10 428          18 113
Total                                                                                    65 435               49 113         110 548

                                                                                                      Segment amortisation
Regional                                                                                  4 511                1 422           5 791
International                                                                               281                  321             748
Total                                                                                     4 792                1 743           6 539

Segment revenue reported above represents revenue generated from external customers. Inter-company sales amounted to R271.840 million
(six months ended 2 April 2017: R285.290 million, year ended 1 October 2017 R541.821 million).

The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 1 to the condensed
consolidated interim financial statements. Segment profit represents the profit before tax earned by each segment without allocation of
impairment losses, acquisition costs, interest received and interest paid. This is the measure reported to the chief operating decision-maker for
the purpose of resource allocation and assessment of segment performance.

GEOGRAPHICAL INFORMATION

The Group's non-current assets by location of operations (excluding goodwill and deferred taxation asset) and revenue are detailed below.
The chief operating decision-maker does not evaluate any of the Group's other assets or liabilities on a segmental basis for
decision-making purposes.
                                                                                                       Non-current assets
                                                                                          Reviewed           Reviewed                
                                                                                         Six-month          Six-month        Audited
                                                                                      period ended       period ended     Year ended
                                                                                           1 April            2 April      1 October
                                                                                              2018               2017           2017
                                                                                             R'000              R'000          R'000
Republic of South Africa                                                                 1 753 647          1 332 852      1 548 831
Kingdom of Swaziland                                                                       132 623            112 288        129 878
                                                                                         1 886 270          1 445 140      1 678 709

                                                                                                           Revenue
Republic of South Africa                                                                 2 458 651          2 103 111      4 472 594
Kingdom of Swaziland                                                                        48 724             47 626        120 723
                                                                                         2 507 375          2 150 737      4 593 317

INFORMATION REGARDING MAJOR CUSTOMERS

Two customers (six months ended 2 April 2017: two, year ended 1 October 2017: two) individually contributed 10% or more of the Group's
revenue arising from both regional and international sources.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six-month period ended 1 April 2018

1.  BASIS OF PREPARATION
    Rhodes Food Group Holdings Limited is a company domiciled in the Republic of South Africa. These condensed consolidated interim
    financial statements ("interim financial statements") as at and for the six-month period ended 1 April 2018 comprise the company and its
    subsidiaries (together referred to as the "Group").

    The interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides
    as issued by the Accounting Practices Committee, the Financial Pronouncements as issued by the Financial Reporting Standards Council,
    and the requirements of the Companies Act of South Africa and the JSE Listings Requirements.

    The accounting policies and methods of computation applied in the preparation of the interim financial statements are consistent with those
    applied in the audited consolidated financial statements for the year ended 1 October 2017.

    The accounting policies adopted and methods of computation are in accordance with International Financial Reporting Standards.
    These interim financial statements were prepared under the supervision of CC Schoombie CA(SA), Chief Financial Officer.

2.  SEASONALITY OF OPERATIONS
    The Group's performance is subject to seasonal trends based on the seasonality of fruit crops which are processed annually from November
    to April and June to August. Due to the seasonal nature of fruit production working capital is actively managed over an annual cycle.

3.  EVENTS SUBSEQUENT TO REPORTING DATE
    On 1 May 2018 the company appointed B Lakey as company secretary subsequent to the resignation of Statucor (Pty) Ltd. The directors
    are not aware of any other matter or circumstance of a material nature arising since the end of the six-month period ended 1 April 2018,
    otherwise not dealt with in the interim financial statements, which significantly affect the financial position of the Group or the results of
    its operations.

4.  PROPERTY, PLANT AND EQUIPMENT
    
                                          Opening   Acquisition of                  Government                               Closing
                                          balance     subsidiaries   Additions  grant received   Disposals    Impairment     balance
    COST                                    R'000            R'000       R'000           R'000       R'000         R'000       R'000
    1 April 2018                        1 765 295                -     268 475               -    (18 148)             -   2 015 622
    2 April 2017                        1 197 797          107 419     233 258         (2 742)       (374)       (3 872)   1 531 486
    1 October 2017                      1 197 797          105 644     486 946         (3 432)    (17 788)       (3 872)   1 765 295
    
                                                                       Opening                                               Closing
                                                                       balance    Depreciation   Disposals    Impairment     balance
    ACCUMULATED DEPRECIATION                                             R'000           R'000       R'000         R'000       R'000
    1 April 2018                                                       304 802          65 435    (13 189)             -     357 048
    2 April 2017                                                       210 971          49 113       (161)         (476)     259 447
    1 October 2017                                                     210 971         110 548    (16 166)         (551)     304 802
    
                                                                       Opening                                               Closing
                                                                       balance                                               balance
    NET ASSET VALUE                                                      R'000                                                 R'000
    1 April 2018                                                     1 460 493                                             1 658 574
    2 April 2017                                                       986 826                                             1 272 039
    1 October 2017                                                     986 826                                             1 460 493
    
    The disposal of property, plant and equipment resulted in a loss of R0.094 million (six months ended 2 April 2017: profit of R0.056 million,
    year ended 1 October 2017 loss of R0.144 million). The impairment of property, plant and equipment resulted in a loss of Rnil (six months
    ended 2 April 2017: loss of R3.396 million, year ended 1 October 2017 loss of R3.321 million). These losses were recognised as part of
    'operating costs' in the condensed consolidated statement of profit or loss and other comprehensive income.
    
    During the six-month period ended 1 April 2018, the Group contracted R105.595 million (six months ended 2 April 2017: R366.717 million,
    year ended 1 October 2017: R264.664 million) for future capital commitments.
    
    There has been no major change in the nature of property, plant and equipment, the policy regarding the use thereof, or the encumbrances
    over the property, plant and equipment.
    
5.  INVESTMENT IN ASSOCIATE
    The Group entered into a sale of share agreement during October 2017 to dispose of 50.83% of the shares in Ma Baker Xpress Proprietary
    Limited for a consideration of R6.100 million. On the date of disposal Ma Baker Xpress Proprietary Limited ceased to be a subsidiary. From
    that date it was accounted for as an investment in an associate, using the equity accounting method, at a value of R5.900 million.
    During the six months ended 1 April 2018 the loss from the investment in the associate recognised in 'operating costs' was R0.160 million.

6.  INVENTORY
    A provision of R13.490 million for the six months ended 1 April 2018 (six months ended 2 April 2017: R6.066 million, year ended 1 October
    2017: R13.380 million) was raised in order to recognise inventory at the lower of cost or net realisable value.

                                                                                              Reviewed       Reviewed               
                                                                                             Six-month      Six-month        Audited
                                                                                          period ended   period ended     Year ended
                                                                                               1 April        2 April      1 October
                                                                                                  2018           2017           2017
                                                                                                 R'000          R'000          R'000
7.  EARNINGS PER SHARE                                                                                                                
    7.1 HEADLINE EARNINGS PER SHARE                                                                                             
        Reconciliation between profit attributable to owners of the company
        and headline earnings:                                                                                                      
        Profit attributable to owners of the company                                            81 068        123 931        234 512
        Adjustments to profit attributable to owners of the company                              1 284          2 405          2 495
        Loss/(profit) on disposal of property, plant and equipment                                  94           (56)            144
        Impairment of property, plant and equipment                                                  -          3 396          3 321
        Loss on sale of subsidiary                                                               1 216              -              -
        Taxation effect                                                                           (26)          (935)          (970)
        Headline earnings                                                                       82 352        126 336        237 007
        Headline earnings per share                                          (cents)              32.6           53.4           96.9
    7.2 DILUTED HEADLINE EARNINGS PER SHARE                                                                                              
        Diluted headline earnings per share                                  (cents)              31.4           51.4           93.4
    7.3 WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE                                                                                       
        Ordinary shares in issue at beginning of the period                                253 762 018    221 000 000    221 000 000
        Weighted number of shares issued during the period                                           -     16 853 874     24 657 869
        Treasury shares                                                                    (1 125 000)    (1 125 000)    (1 125 000)
        Weighted average number of shares in issue                                         252 637 018    236 728 874    244 532 869
        Effect of convertible preference shares                                              9 000 000      9 000 000      9 000 000
        Effect of share options                                                                403 093        175 828        189 081
        Weighted average number of dilutive shares in issue                                262 040 111    245 904 702    253 721 950

8.  CONTINGENT LIABILITIES
    The Group has entered into guarantees in favour of South African Revenue Service, for import and export activities as well as various
    municipalities for operational activities. The guarantees from import and operational activities outstanding as at 1 April 2018 are
    R6.560 million (six months ended 2 April 2017: R5.070 million, year ended 1 October 2017: R6.560 million). There were no other changes in
    the contingent liabilities from the prior period as disclosed in the audited annual financial statements for the year ended 1 October 2017.

9.  RECLASSIFICATION OF PRIOR PERIOD DISCLOSURE
    R18.742 million of the non-current biological assets balance in the Condensed Consolidated Statement of Financial Position for the period
    ended 2 April 2017 was reclassified to the current portion of biological assets, as this is a better representation of the expected lifespan of
    the asset.

10. RELATED PARTY TRANSACTIONS
    The Group generated sales from Peaty Mills Plc of R86.122 million (six months ended 2 April 2017: R76.300 million, year ended 1 October
    2017: R182.483 million). Included in accounts receivable are amounts due from Peaty Mills Plc of R34.960 million (six months ended 2 April
    2017: R28.718 million, year ended 1 October 2017: R43.143 million). There were no other significant related party transactions during the
    period under review.

11. DIVIDEND
    On 15 January 2018, a dividend of 31.1 cents per share, total dividend R81.719 million (16 January 2017, a dividend of 42.2 cents per share,
    total dividend R107.610 million) was paid.
 
12. SIX-MONTH PERIOD END
    The Group's financial year ends in September which reflects 52 weeks of trading, and as a result the reporting date may differ year on year.
    The 2017 financial year, however, included a 53rd week of trading. References to an interim financial period are to the 26/27 weeks ended
    on or about 31 March. As a result the interim financial statements were prepared for the 26 week period ended 1 April 2018 (27 week period
    ended 2 April 2017).
 
13. REVIEW REPORT
    The directors have elected to engage the Group's auditors, Deloitte & Touche, to conduct a voluntary review of the condensed consolidated
    interim financial statements.

    The Group's auditors have issued an unmodified review report on the condensed consolidated interim financial statements which is available for 
    inspection on the group's website (http://www.rfg.com) as well as the group's registered office (Pniel Road, Groot Drakenstein, 7680), at no charge, 
    during normal business hours. The auditor's report does not necessarily report on all of the information contained in this announcement. 
    Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain 
    a copy of that report together with the accompanying financial information from the group's registered office.

CORPORATE INFORMATION

Registered address     Pniel Road, Groot Drakenstein, 7680
                       Private Bag X3040, Paarl, 7620
                        
Directors              Dr YG Muthien* (Chairperson)
                       MR Bower*
                       BAS Henderson (Chief Executive Officer)
                       TP Leeuw*
                       LA Makenete*
                       B Njobe*
                       CC Schoombie (Chief Financial Officer)
                       CL Smart**
                       GJH Willis**
                        
                       * Independent non-executive
                       ** Non-executive
                        
Company secretary      B Lakey
                        
Transfer secretaries   Computershare Investor Services Proprietary Limited
                        
Auditors               Deloitte & Touche

Bruce Henderson                                     
Chief Executive Officer                             

Tiaan Schoombie
Chief Financial Officer
 
Groot Drakenstein
22 May 2018  

Sponsor                Rand Merchant Bank, a division of FirstRand Bank Limited

Date: 22/05/2018 07:05:00 
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