RCL FOODS LIMITED - Trading statement for the 6 month period ended 31 December 2013

Trading statement for the 6 month period ended 31 December 2013

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 FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2013

The Group’s results for the 6 month period ended 31 December 2013
are due to be released on the Stock Exchange News Service of the
JSE on Wednesday 19 February 2014.

RCL Foods shareholders are advised that the Group expects its
operating profit (earnings before interest and taxation) for the 6
month period ended 31 December 2013 to be between 380% and 400%
higher than that of the 6 month period ended 31 December 2012,
while its Earnings Per Share (“EPS”) from continuing operations
and   Headline  Earnings   Per  Share  (“HEPS”)   from  continuing
operations for the 6 month period ended 31 December 2013 are
expected to be between 60% and 80% lower than that of the 6 month
period ended 31 December 2012.

The results have been impacted by the following:

  - operating profit has been impacted by the first-time
    inclusion of Foodcorp results for the six months to December
    period;
  - earnings   are   materially  affected   by   the  significant
    deterioration in the Rand/Euro exchange rate from 1 July 2013
    to 31 December 2013, due to its impact on the valuation of
    the Foodcorp Eurobond and related hedges. This is a non-
    cashflow mark-to-market adjustment and has been accounted for
    as a finance cost;
  - EPS and HEPS are further impacted by the dilutionary effect
    of additional shares in issue because of the March 2013
    rights offer.

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

Durban
11 February 2014

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

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