RCL FOODS LIMITED - Trading statement year ended June 2020

Trading statement – year ended June 2020

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 – YEAR ENDED JUNE 2020

Shareholders are referred to the trading statement published on the
Stock Exchange News Service ("SENS") on 8 June 2020. RCL FOODS
reported that its headline earnings per share ("HEPS") for the year
ended June 2020 ("current period") would be lower by at least 30%
when compared to the year ended June 2019 (“corresponding period”)
and that a further trading statement would be published as soon as
the Group had reasonable certainty on the expected HEPS range for the
current period.

Shareholders are advised that RCL FOODS expects its HEPS for the
current period to be between 11.2 cents (-70.4%) and 16.2 cents (-
57.2%) when compared to the reported HEPS of 37.9 cents for the
corresponding period. The expected decline is largely attributable
to the negative impact of the COVID-19 pandemic ("pandemic") and
national lockdown, as highlighted in the trading statement published
on SENS on 8 June 2020. Excluding this impact, RCL FOODS would have
delivered a meaningful growth over the corresponding period.
Importantly, RCL FOODS finished the current period in a strong cash
position with healthy underlying cash generation.

The impact of the pandemic on global economies, exacerbated in South
Africa’s case considering its already weak economic fundamentals,
necessitated an evaluation of the carrying values of the Group’s
assets for possible impairments. Following the detailed impairment
review of the Group’s assets, a total impairment of R1 506,3 million
(R1 252,0 million post-tax) has been recognised on property, plant
and equipment, goodwill and trademarks in the current period.

Largely due to the above impairments, which are excluded from the
calculation of HEPS, earnings per share ("EPS") for the current period
is expected to be lower than HEPS and between negative 101.8 cents
and negative 104.3 cents when compared to the reported EPS of negative
12.7 cents for the corresponding period.

The Group’s financial results for the current period are expected to
be released on SENS on or about 31 August 2020.

Any estimate financial information contained herein has not been
reviewed and reported on by the Group’s external auditors.


Durban
21 August 2020

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

Date: 21-08-2020 10:45:00
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