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Group financial results and cash dividend declaration for the year ended June 2020
RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
ISIN: ZAE000179438
Share Code: RCL
("RCL FOODS" or "the Group")
GROUP FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION FOR THE YEAR
ENDED JUNE 2020
- Revenue up 7.4% to R27,8 billion
- Earnings before depreciation, amortisation and impairment
(EBITDA) up 7.2% to R1 636,0 million
- Headline earnings per share (HEPS) down 65.7% to 13.0 cents
- Earnings per share (EPS) down 711.0% to negative 103.0 cents
- Cash generated by operations up 222.7% to R2 571,4 million
- Total dividend declared 25.0 cents (June 2019: 25.0 cents)
RCL FOODS reported a loss of R959,0 million and headline earnings
of R114,2 million for the year ended June 2020. The COVID-19
pandemic ("pandemic") and national lockdown had a material impact
on the results in the last quarter of the current financial year.
The negative impact of the pandemic, coupled with the sovereign
ratings downgrade, necessitated an evaluation of the carrying
values of the Group’s assets for possible impairments, over and
above the existing obligatory annual impairment assessment of the
Group’s indefinite life intangible assets. Following the detailed
impairment review of the Group’s assets, a total impairment of R1
506,3 million (R1 255,1 million post-tax) was recognised on
property, plant and equipment, goodwill and trademarks in the
current year.
Groceries delivered another consistent result driven by volume
growth, especially in Pet Food, Peanut Butter and Rusks. Baking
was negatively impacted by volume pressure and margin challenges
due to the inability to fully recover input cost increases,
however the Speciality category reported a pleasing improvement
following the prepared lines exit in the prior financial year and
the increased demand for at-home consumption during the national
lockdown. Chicken’s result was negatively impacted as a result of
the national lockdown with Quick Service Restaurants volumes being
redirected to the Retail Wholesale channel at lower prices or
being held in stock. An improved sales mix, weighted towards
higher priced local sales, was the main driver of the positive
Sugar result. Vector Logistics’ results included a R277,5 million
gain on bargain purchase arising from the acquisition of the
Imperial Logistics South Africa Group Proprietary Limited’s cold
chain business ("ICL"). Excluding the gain on bargain purchase,
Vector made a loss for the year largely driven by significant
costs associated with the ICL acquisition.
EPS for the current period is lower than HEPS, largely due to the
impairments recognised during the year, which are excluded from
the calculation of HEPS.
CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a final
gross cash dividend (number 91) of 10.0 cents (8.00000 cents net of
dividend withholding tax) for the year ended June 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
9950019712.
The salient dates for the dividend will be as follows:
2020
Publication of declaration data Monday, 31 August
Last day of trade to receive a dividend Tuesday, 27 October
Shares commence trading "ex" dividend Wednesday, 28 October
Record date Friday, 30 October
Payment date Monday, 2 November
Share certificates may not be dematerialised or rematerialised
between Friday, 30 October 2020 and Monday, 2 November 2020, 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 in the full announcement published on The Stock Exchange
News Service and on the RCL FOODS website,
https://rclfoods.com/financial-results-and-reports-2020/ on 31
August 2020.
With respect to the consolidated financial statements for the
year ended June 2020, the auditors, PricewaterhouseCoopers Inc.,
have issued an unqualified audit opinion in terms of the
International Standards on Auditing. The auditors unqualified
audit report in terms of International Standards on Auditing,
along with their key audit matters and the Annual Financial
Statements is available on the RCL FOODS website,
https://rclfoods.com/financial-results-and-reports-2020/.
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
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/RCL/31082020.pdf
or on the Group’s website set out above. Copies of the full
announcement may be inspected at the Group’s registered office and
at the offices of its sponsor at no charge, during the 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 john.maher@rclfoods.com or on
087 362 8501.
Durban
31 August 2020
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 31-08-2020 07:05:00
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