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Abridged consolidated audited results for the year ended 30 June 2013 and appointment of directors
RCL Foods Limited ("RCL" or "Group")
(Formerly known as Rainbow Chicken Limited)
Registration number: 1966/004972/06
JSE share code: RBW
ISIN: ZAE000019063
Effective Monday, 2 September 2013:
ISIN:ZAE000179438
JSE share code: RCL
RCL FOODS LIMITED
FORMERLY KNOWN AS RAINBOW CHICKEN LIMITED
Abridged consolidated audited results for the year ended 30 June 2013 and appointment of directors.
-Revenue
up 28,7%
-Headline EBITDA
down 27,4%
-Headline earnings per share from
continuing operations down 94,8%
-Cash generated by
operations up 32,2%
COMMENTARY
NAME CHANGE
At a general meeting of shareholders on 2 August 2013 a special resolution
was approved to change the name of the company from "Rainbow Chicken
Limited" to "RCL Foods Limited". Shareholders are advised that the Company
will begin trading under the new name "RCL Foods Limited" under the new
JSE share code "RCL", abbreviated name "RCL" and new ISIN ZAE000179438
with effect from commencement of trade on Monday, 2 September 2013.
The reason for the change is the Board believes that, post completion of the
acquisition of a controlling interest in New Foodcorp Holdings (Pty) Limited
("Foodcorp"), the new name will better reflect the Group's strategic vision as a
consumer focused food business that adds value for consumers and customers
through its range of market leading brands. The Group now consists of the
chicken business ("Rainbow"), the logistics business ("Vector") and Foodcorp.
BASIS OF PREPARATION
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS), the information required by IAS 34
(Interim Financial Reporting), IFRIC interpretations, SAICA financial
reporting guides and in compliance with the Companies Act of South Africa
and the Listings Requirements of the JSE Limited, under the supervision of the
Chief Financial Officer, Robert Field CA(SA). The accounting policies comply
with IFRS and are consistent with those applied in the previous year except
for the amendments to IAS 1 (Presentation of Financial Statements) that
became effective 1 July 2012. The adoption of this standard has no effect on
the results, nor has it required any restatement of the results.These abridged
consolidated audited results, which have been derived from the audited annual
financial statements and with which they are consistent in all material respects,
have been audited by PricewaterhouseCoopers Inc. Their unmodified audit
opinion on the annual financial statements is available for inspection at the
registered office of the company. The auditor's report does not necessarily
cover 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 work they should obtain a copy of the Integrated Annual Report
after it has been released on or before 30 September 2013.
RCL FOODS FINANCIAL PERFORMANCE SUMMARY
RCL Foods is committed to its strategic focus of building a diversified food
business of scale in sub-Saharan Africa that has compelling brands that deliver
to consumer and customer needs. The Zam Chick Limited ("Zam Chick")
transaction in April 2013 is an important entry with a credible partner into
Zambia's poultry market and RCL Foods was pleased to announce a further
investment with Zambeef Products PLC ("Zambeef") in a new hatchery ("Zamhatch")
shortly after the initial deal was concluded. Locally, Competition Commission
approval was obtained for the Foodcorp deal on 1 May 2013, which has resulted
in the inclusion of two months of Foodcorp's results. Subsequent to year-end,
a further 23,9% stake was purchased by RCL Foods from Foodcorp management
to bring the effective holding to 88,1%.
RCL Foods' revenue for the 12 months to June 2013 increased by 28,7% to
R10,1 billion, largely due to the inclusion of two months of Foodcorp's results.
RCL Foods' headline EBITDA declined by 27,4% from R614,9 million to
R446,2 million with the associated margin reducing from 7,8% to 4,4%.
Rainbow has experienced an extremely difficult year with high import volumes
and record feed input costs decimating margins. Whilst Rainbow's added value
products have delivered an acceptable performance, Individually Quick Frozen
(IQF) products have sold below cost for most of the financial year. Rainbow
recorded a R3,7 million operating loss for the period. Vector's operating profit
decreased by 15,1% to R143,3 million due to investment in additional capacity
and a slowdown in principals' volumes in the second half of the year. Foodcorp's
operating profit for the two months to June was R99,0 million but earnings
were compromised due to a R70,9 million negative adjustment on the Euro
denominated debt arising from the depreciation in the exchange rate from
1 May to 30 June.
Headline earnings from continuing operations of R18,1 million decreased by
93,2% over the comparative period, impacted by Foodcorp's funding costs
and an effective tax rate of 113,5%. The latter is largely due to non-deductible
transaction costs (R45,6 million) and the non-allowance of certain funding
costs and foreign exchange losses (R83,0 million) within the Foodcorp holding
structure.
The Group cost of R72,6 million per the segment analysis is largely due to the
transaction costs and other listed company expenses.
The R3,9 billion equity raising exercise conducted in January 2013, helped to
offset the significant debt levels inherited via the Foodcorp transaction as well
as fund the Foodcorp and Zam Chick transactions. The prior year earnings per
share calculations have been restated to take into account the impact of the
rights offer, albeit an immaterial adjustment.
Impact of Foodcorp acquisition on the statement of financial position
The acquisition of Foodcorp during the current financial year has had a
significant impact on the Group's statement of financial position with IFRS
3 (Statement of business combinations) requiring recognition of net assets
acquired at fair value. This resulted in assets and liabilities acquired on 1 May
2013 amounting to R6,6 billion and R7,8 billion respectively. The purchase price
of the acquisition was R1,0 billion resulting in goodwill of R2,6 billion being
recognised after the completion of a preliminary purchase price allocation
(PPA) exercise. The statement of financial position reflects an increase in
working capital balances due to the scale of the Foodcorp business. Certain
key items are highlighted below.
Trademarks and customer relationship intangible assets of R2,8 billion were
recognised on the acquisition of Foodcorp. The significant value of these
intangibles acquired shows the wealth of the brands added to the Group by
the Foodcorp acquisition.
The preference shares receivable of R130,3 million relates to amounts
receivable from the Foodcorp management share ownership structure and has
been settled subsequent to year-end.
The sale agreement that has been entered into to dispose of the fishing
division of Foodcorp has resulted in R536,6 million of assets and
R178,7 million of liabilities classified as held for sale.
The significant increase in interest-bearing liabilities primarily relates to
Foodcorp's GBP390,0 million Senior Secured Notes. These liabilities are offset by
a positive R340,7 million of derivative financial instruments that are marked to
market relating to the hedging structure.
The increase in deferred income tax liabilities to R1,4 billion is largely due to the
revaluation of assets and liabilities arising from the PPA exercise.
A minority interest of R331,4 million has been reflected in the statement of
changes in equity and arose due to the outside shareholding in Foodcorp by
Foodcorp management and Capitau Investment Advisers (Pty) Limited. The
minority interest value has been determined on the basis of a minority interest
stake with no control premium included.
Cash flow and working capital
Cash generated by operations increased by R162,9 million (32,2%) in
comparison to the prior period mainly as a result of the inclusion of Foodcorp's
results for two months.
Cash and cash equivalents and investment in money market fund at year end
totalling R2,8 billion is the result of a fully underwritten R3,9 billion rights offer
completed in March 2013, mainly utilised for the investments in Foodcorp (R1,0
billion) and Zam Chick (R129,0 million) and the repurchase by the Group of
a GBP52,9 million PIK note (payment-in-kind interest-bearing debt note) held
within the Foodcorp funding structure.
The finance income of R53,9 million relates to the investment of the rights
issue proceeds. Costs of R77,4 million relating to the rights offer process were
offset against share capital. Interest on the Foodcorp Senior Secured Notes is
paid every six months and is not reflected as a cash outflow in the two months
to June 2013.
Gearing and capital structure
Year-end gearing of 83,5% (interest-bearing liabilities to equity) is higher than
management's view of the optimal capital structure. Net gearing, taking into
account cash and cash equivalents and investment in money market fund
at the balance sheet date, is 44,3%. The short-term focus will be to eliminate
intragroup debt inefficiencies within the funding structure and to assess capital
requirements taking into account future investment opportunities. Foodcorp
has the option to redeem 10% of the Senior Secured Notes prior to March 2014
at 103% of the principal amount.
Capital expenditure
Capital expenditure for the 12-month period was R485,9 million (2012: R481,0
million). Significant individual projects included the Rustenburg and Bushvalley
expansions (R137,0 million), conversion of chicken house heating from gas to
coal (R71,8 million) and investment in additional freezing and chilling capacity
in Worcester (R44,2 million). An amount of R110,7 million (2012: R186,3 million)
has been contracted and committed, but not spent, whilst a further R184,5
million (2012: R73,7 million) has been approved, but not contracted.
Return on equity decreased to 0,5% (2012: 9,3%), being impacted by Rainbow's
poor operating performance.
RAINBOW REVIEW OF OPERATIONS
It has been an extremely difficult year for the poultry industry and Rainbow
has not been immune to the industry's challenges. High import volumes,
consumers under pressure and record feed costs have all contributed to a
difficult trading environment.
An acceptable performance in the quick service restaurants, foodservice sector
and added value in retail was overshadowed by mainstream chicken, notably
IQF, which sold at a considerable loss for most of the year. Despite an overall
5,1% volume growth in tons per day and 6,3% average realisation increase over
the comparable period, Rainbow posted a R3,7 million loss for the year as a
result of not being able to recover the 19,2% rand per ton increase in feed cost.
Feed cost now comprises 55,0% of the cost of the live bird delivered to the
plant. All other costs have been managed to an acceptable increase of 7,9%
over the prior year.
IQF pricing has at certain times during this financial year traded at prices lower
than 2011, despite above inflation increases in key cost lines like feed, fuel,
electricity and water. A restoration of normal trading conditions is required for
the poultry industry in South Africa to survive.
Impairment assessment
In view of the losses being incurred in Rainbow, and in compliance with the
requirements of IAS 36 (Impairment of assets), the Board of Rainbow and
RCL Foods have considered the need for an impairment of assets. Based on
the outcome of the discounted cash flow model and the need to await the
outcome of the application for anti-dumping protection, the Boards have
decided that it would be inappropriate to impair poultry assets at this point. It
must however be stated that if there is not a notable improvement in operating
margins within the next 12 months then an impairment of assets will become
necessary.
Poultry industry
The local poultry industry is a significant component of South Africa's
agricultural sector and poultry remains the most affordable protein source.
The local industry continues to be impacted by two major issues, namely:
- Imports at record levels with dumping of product; and
- Escalating feed raw material costs.
Imports maintaining their record levels
The local chicken market is estimated to have grown by 7% to R29,8 billion
over the past year, a combination of a 4% volume growth and a 3% realisation
increase.
Imports of chicken (excluded Mechanically Deboned Meat (MDM)) for the
financial year 2013 was 242 128 tons, being 43 279 tons above the long-term
average and representing approximately 12% of the local market
(source: South African Poultry Association (SAPA)). The country
of origin of imports has changed over the last few years with a significant
increase being experienced from European countries which enjoy a free trade
agreement with South Africa.
SAPA has engaged extensively with government and ITAC to find an acceptable
solution that promotes fair trade whilst affording protection to local jobs.
A decision regarding a general tariff application is expected in the near
future, whilst the anti-dumping application against certain European countries
is expected in early calendar 2014.
Escalating feed raw material costs
Droughts in Argentina and the USA in the previous season had a significant
impact on the international maize and soya prices, with the extremely low
stock levels in the USA heightening price volatility. The USA is expecting large
crops with the near perfect weather conditions being experienced currently
translating into lower forward market prices.
Injection cap proposed by government
Rainbow continues to play an active role in working with government and the
industry in order to adopt a responsible approach to the injection of poultry
meat.
In December 2012 the Department of Agriculture, Forestry and Fisheries
(DAFF) published its intention to cap injection at 8% in South Africa. Rainbow
welcomes the decision to cap injection at appropriate levels, however, it
believes that 8% is too low to deliver a quality succulent product as demanded
by consumers and to restore the natural loss of fluids from defrosting. Rainbow
has engaged with DAFF and provided input into scientific benchmarks for
the appropriate levels of brine injection and consumer protection. All poultry
stakeholders submitted their proposals to DAFF on 18 January 2013 with
proposed legislation expected to be announced in the next six months.
Supply chain
In the current year investment in the chicken supply chain has been limited
to spend required to maintain operations. No new volume enhancing projects
have been approved this year. The capital expenditure in freezing capacity
at the processing plants in the prior year, has enabled greater plant flexibility
and mix improvement. Overall the key performance indicators of mortality,
average daily gain, feed conversion ratio and yield have been maintained at
the improved levels achieved in the prior year.
The Rustenburg plant was significantly impacted by a wildcat strike in
November 2012, a further eight-week strike over wage increases from April
to June 2013 and water and electricity supply issues. The cost impact of these
combined issues is estimated at R33,0 million.
VECTOR REVIEW OF OPERATIONS
Market conditions
Depressed economic conditions and weak consumer demand, particularly in
the retail sector, have had a negative impact on Vector's performance during
the 2013 financial year. Most of Vector's principals are experiencing sluggish
and in some cases negative growth. The take on of two new principals, Namib
Poultry and Mello Pies, as well as growth in the Pick n Pay basket, meant some
of the revenue declines from existing business was able to be offset. Added to
these pressures, the logistics sector continues to be challenged by increasing
operating costs driven by high fuel and electricity prices which have not been
fully recovered in Vector's margin. Vector is proud to have been nominated
Burger King's distribution partner, with their first store opening in May 2013.
Review of operations and results
Vector's operating profit declined by 15,1% from R168,7 million in 2012 to R143,3
million in 2013. Revenue grew by 10,3%, reaching R1,5 billion for the year under
review whilst operating costs grew 13,4% due to investment in new capacity
which was not fully utilised. Despite a good start to the year, Vector's results
were challenged in the second half due to a fall-off in volumes across most
of its principals. In addition principals sought cheaper routes to market in the
form of bulk direct deliveries into the trade resulting in an under recovery of
fixed overhead costs for Vector in its secondary network.
Operating costs, excluding the investment in new capacity, were well managed
during the period under review through a number of efficiency improvement
initiatives, sustainability awareness, stock loss reduction and general cost
containment. Many of the benefits of the "Space for Growth" project initiated
during 2012, which covered a full review of Vector's organisation design,
network evaluation and assessment of various procurement opportunities,
have started coming to fruition. Further opportunities are being pursued in
the new financial year. The implementation of the Adexa demand planning
tool has contributed to a reduction in inventories and increased service levels
in 2013.
FOODCORP ACQUISITION AND REVIEW OF OPERATIONS
Competition Commission approval was obtained on 1 May 2013 for the
acquisition of an effective 64,18% shareholding in Foodcorp, which is South
Africa's third largest food producer and brings a number of leading brands into
the RCL Foods stable. A further 23,9% of Foodcorp was acquired post year
end to bring the effective holding to 88,1%.
Background
Foodcorp manufactures, markets and distributes a diversified portfolio of food
products ranging from basic essentials to top-end desserts and convenience
meals. Many of the products are associated with South African tradition and
heritage, and are therefore among the leading and best recognised brands
in South Africa. The continued success of the brands reflects the strategic
decision to focus on value-added branded business and product innovation
and reduce dependence on commodity price movements and as such is a
seamless fit into the RCL Foods strategy.
Foodcorp positions the majority of its products to appeal to the South African
mass consumer market, which represents approximately 70% of South Africa's
total population, and supplies most of the products nationally to major retail
and wholesale outlets. A limited number of products are exported, principally
to the rest of Africa and the Middle East. Foodcorp is managed under six
production units being Grocery, Milling, Baking, Pie, Beverage and Speciality.
Disposal of fishing division
The Foodcorp fishing division operates in the pelagic, hake and lobster sectors
and has Government granted fishing quotas in each of the three sectors.
Foodcorp has entered into a sale agreement to dispose of this division and it
is thus presented as a discontinued operation. Completion of the transaction
is subject to the fulfilment of certain conditions, including approval by South
African competition authorities.
Foodcorp debt and hedging profile
First priority Senior Secured Notes
On 4 March 2011, Foodcorp issued GBP390,0 million Senior Secured Notes with a
coupon rate of 8,75% per annum and a maturity date of 1 March 2018.
Payments under the 2018 Notes consists of two components, namely the
principal due on 1 March 2018 and coupon payments due semi-annually on
1 September and 1 March. In order to hedge the foreign currency exposure, the
following foreign exchange contracts were entered into:
- The principal was hedged 50% through a performance participating foreign
exchange and 50% through a vanilla forward exchange contract, both for
six years maturing on 1 March 2017;
- The semi-annual coupon payments have been partially hedged (50%) at
inception using forward exchange contracts maturing on each coupon
payment date, until 1 March 2017; and
- In addition, the remaining portion of the coupon payment due on
1 September 2013 was recently hedged using a vanilla forward exchange
contract.
The mark-to-market effects of the hedging arrangements are accounted for in
the income statement under financing costs.
Operational results
Foodcorp had a reasonable trading performance for the two-month period,
amidst tough trading conditions and constrained consumer spending.
Net revenue from continuing operations amounted to R1,2 billion and operating
profit R99,0 million. Foodcorp's net interest expense was R159,7 million but
included a negative net accounting adjustment to the fair value of the Euro
denominated debt amounting to R70,9 million. Foreign exchange movements on
foreign debt are accounted for as part of the cost of funding on the interest
line in the income statement.
IT
During this reporting period, Rainbow has optimised and extended the SAP
Enterprise Resource Planning systems within the business following the July
2012 implementation. The replacement process for the remaining legacy
systems has continued. The implementation of SAP has significantly enhanced
the visibility and planning of our supply chain and operational costs across the
business. The delivery of a comprehensive consignment stock management
solution between Rainbow and Vector in June 2013 will greatly improve the
management of all our stock related transactions. Further initiatives have
included enhancements within our Feed, Agriculture and Processing areas
through the use of specialised global poultry-based applications. Extended
focus has also been placed on the optimisation of the outbound supply chain
through the Vector system solutions. The implementation of global best
practice processes and shared services will enable the delivery of significant
business benefits into the future. The leveraging of the Group's IT systems and
optimised business processes remains a key enabler within the business.
DIVIDEND
In view of Rainbow's poor trading results and the uncertainties relating to the
poultry industry, the Board has resolved not to declare a dividend for the 2013
financial year (2012 final dividend 32,0 cents and total dividend 60,0 cents).
DIRECTORATE
Mr Chris van den Heever resigned as a non-executive director from the Board
with effect from 1 February 2013 and is currently seconded to RCL Foods from
Remgro in order to focus on projects aligned to the Group's strategic growth
plans. Mr Hein Carse, who like Chris is an Investment Executive at Remgro,
was appointed as a non-executive director of the Board with effect from 19
February 2013.
The RCL Board is pleased to announce that Mr Derrick Msibi and Mr George Steyn
have been appointed as directors of the Board with immediate effect.
ACCOUNTING FOR ZAM CHICK JOINT VENTURE
Aligned to the Group's strategy of expansion into subSaharan Africa, RCL
Foods concluded an agreement for the purchase of a 49% shareholding in
Zam Chick for US$14,25 million (R129,0 million), as announced on SENS on
4 February 2013. Zam Chick is the broiler operations of Zambeef of
Zambia, itself a fully integrated agri-business listed on the Lusaka and London
exchanges. The effective date of the transaction was 1 April 2013 and as Zam
Chick has a year-end of 31 March, RCL Foods will consolidate Zam Chick's
12-month results to March 2014 in the Group's 2014 financial reporting period.
PROSPECTS
The poor state of the global and local economy means a sustainable
improvement in consumer sentiment and spending is unlikely in the near future
which will impact across Foodcorp, Rainbow and Vector.
The poultry industry is at crisis point and anti-dumping protection will be key
to the survival of the industry.
The trading outlook for Vector is likely to remain challenging, particularly
in the retail business where Vector's principals are coming under increased
pressure from cheap imports. Vector will continue to seek new business to
take advantage of the additional capacity created in 2013.
The Group continues to explore opportunities in strategic growth markets in
the food sector in South Africa and sub-Saharan Africa in line with its long-
term aspirations.
For and on behalf of the Board
J J Durand M Dally
Non-executive Chairman Chief Executive Officer
Durban 27 August 2013
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 30 June
(R'000) 2013 2012
ASSETS
Non-current assets
Property, plant and equipment 3 647 206 1 824 072
Intangible assets 2 871 804 29 874
Deferred income tax asset 4 327
Investment in joint venture 128 955
Goodwill 2 905 304 287 444
9 557 596 2 141 390
Current assets
Inventories 1 322 055 873 040
Biological assets 537 059 476 427
Trade and other receivables 2 111 849 1 347 671
Derivative financial instruments 361 505 20 811
Preference shares receivable 130 275
Cash and cash equivalents 2 313 191 305 792
Investment in money market fund 450 000
Tax receivable 32 325 31 160
Assets of disposal group classified
as held for sale 536 605
7 794 864 3 054 901
Total assets 17 352 460 5 196 291
EQUITY
Capital and reserves 7 056 209 2 906 359
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 5 588 248 65 642
Trade and other payables 24 398
Deferred income tax liabilities 1 409 273 432 655
Retirement benefit obligations 155 350 108 587
7 177 269 606 884
Current liabilities
Trade and other payables 2 630 899 1 648 147
Interest-bearing liabilities 302 318 33 243
Derivative financial instruments 5 766 3
Current income tax liabilities 1 343 1 655
Liabilities of disposal group classified
as held for sale 178 656
3 118 982 1 683 048
Total liabilities 10 296 251 2 289 932
Total equity and liabilities 17 352 460 5 196 291
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
30 June 30 June
(R'000) 2013 2012
Continuing operations
Revenue 10 108 812 7 855 142
Operating profit before
depreciation and amortisation 444 321 614 510
Depreciation and amortisation (278 294) (200 286)
Operating profit 166 027 414 224
Finance costs (153 675) (11 358)
Finance income 53 874 7 370
Profit before tax 66 226 410 236
Income tax expense (75 148) (143 469)
(Loss)/profit after tax from
continuing operations (8 922) 266 767
Profit for the year from
discontinued operation 15 311
Profit for the year 6 389 266 767
Attributable to:
Equity holders of the company 26 507 266 767
Non-controlling interests (20 118)
HEADLINE EARNINGS
Continuing operations
Profit for the year attributable to
equity holders of the company 16 686 266 767
Loss on disposal of property,
plant and equipment 1 373 307
Headline earnings from continuing
operations 18 059 267 074
Discontinued operation
Profit for the year attributable to
equity holders of the company 9 821
Headline earnings from discontinued
operation 9 821
Year ended Year ended
30 June 30 June
(Cents) 2013 2012
Earnings per share from continuing and
discontinued operation attributable to
equity holders of the company
Continuing operations
Basic earnings per share* 4,3 88,3
Basic earnings per share diluted* 4,3 88,1
Headline earnings per share* 4,6 88,4
Headline earnings per share diluted* 4,6 88,2
Discontinued operation
Basic earnings per share 2,5
Basic earnings per share diluted 2,5
Headline earnings per share 2,5
Headline earnings per share diluted 2,5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share- Controlling Non-
Stated Other based Retained interest controlling
(R'000) capital reserves payments earnings total interest Total
Balance at 1 July 2011 1 189 684 138 788 1 527 861 2 856 333 2 856 333
Total comprehensive income for the year 266 767 266 767 266 767
Ordinary dividends paid (247 246) (247 246) (247 246)
BEE share-based payments charge 3 383 3 383 3 383
Employee share option scheme:
Proceeds from shares issued 8 569 8 569 8 569
Value of employee services 18 553 18 553 18 553
Balance at 1 July 2012 1 198 253 160 724 1 547 382 2 906 359 2 906 359
Total comprehensive income for the year 1 041 26 507 27 548 (20 118) 7 430
Ordinary dividend paid (94 409) (94 409) (94 409)
Acquisition of a subsidiary 331 424 331 424
BEE share-based payments charge 3 336 3 336 3 336
Rights issue 3 857 469 3 857 469 3 857 469
Employee share option scheme:
Proceeds from shares issued 23 472 23 472 23 472
Value of employee services 21 128 21 128 21 128
Balance at 30 June 2013 5 079 194 1 041 185 188 1 479 480 6 744 903 311 306 7 056 209
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
30 June 30 June
(R'000) 2013 2012
Profit for the year 6 389 266 767
Other comprehensive income
Cash flow hedges 1 019
Currency translation differences 22
Other comprehensive income
for the year net of tax 1 041
Total comprehensive income
for the year 7 430 266 767
Total comprehensive income
for the year attributable to:
Equity holders of the company 27 548 266 767
Non-controlling interests (20 118)
7 430 266 767
CONSOLIDATED CASH FLOW INFORMATION
Year ended Year ended
30 June 30 June
(R'000) 2013 2012
Operating profit 166 027 414 224
Non-cash items 350 785 207 564
Operating profit before working
capital requirements 516 812 621 788
Working capital requirements 152 467 (115 419)
Cash generated by operations 669 279 506 369
Net finance income/(cost) 43 381 (3 988)
Net cash flows from operating
activities discontinued operation 53 293
Tax paid (60 938) (71 642)
Cash available from operating
activities 705 015 430 739
Dividends paid (94 409) (247 246)
Cash outflows from investing
activities continuing operations (1 767 975) (454 651)
Cash outflows from investing
activities discontinued operation (759)
Cash inflows from financing activities
continuing operations 3 165 636 107 454
Cash inflows from financing activities
discontinued operation (109)
Net movement in cash and cash
equivalents 2 007 399 (163 704)
Cash and cash equivalents at the
beginning of the year 305 792 469 496
Cash and cash equivalents at the
end of the year 2 313 191 305 792
SUPPLEMENTARY INFORMATION
Year ended Year ended
30 June 30 June
(R'000) 2013 2012
Capital expenditure contracted
and committed 110 702 186 831
Capital expenditure approved but
not contracted 184 529 73 703
Contingencies 14 737 28 433
STATISTICS
Ordinary shares in issue (000's) 574 256 294 992
Weighted average ordinary
shares in issue* (000's) 391 076 302 193
Diluted weighted average
ordinary shares in issue* (000's) 392 189 302 876
Net asset value per share (cents) 1 228,8 985,2
Ordinary dividends per share:
Interim dividend paid (cents) 28,0
Final dividend declared/paid (cents) 32,0
Total dividends (cents) 60,0
SEGMENTAL ANALYSIS
Year ended Year ended
30 June 30 June
(R'000) 2013 2012
Revenue 10 108 812 7 855 142
Rainbow 8 143 587 7 196 632
Vector 1 476 888 1 339 580
Foodcorp 1 217 505
Sales between segments:
Vector to Rainbow (725 790) (681 070)
Vector to Foodcorp (3 378)
Operating (loss)/profit:
Rainbow (3 680) 245 487
Vector 143 303 168 737
Foodcorp 99 010
Unallocated Group costs (72 606)
Operating profit 166 027 414 224
Finance costs (153 675) (11 358)
Finance income 53 874 7 370
Profit before tax 66 226 410 236
* Prior year figures adjusted for impact of the rights offer.
Directors
JJ Durand (Non-executive Chairman), M Dally (CEO)*, HJ Carse,
RH Field*, M Griessel, PR Louw, NP Mageza, JB Magwaza, MM Nhlanhla,
RV Smither, GC Zondi *Executive Directors
Company secretary
JMJ Maher
Registered office
RCL Foods Limited
Six The Boulevard, Westway Office Park, Westville, 3629
Transfer secretaries
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Auditors: PricewaterhouseCoopers Inc
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Bankers: ABSA Bank Limited
Website: www.rainbowchicken.co.za
Date: 27/08/2013 05:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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