SENS Headlines
Trading update for the five months ended February 2021

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


Following a positive start to RFG?s new financial year in October 2020, trading
slowed considerably during the peak of the second wave of the Covid-19
pandemic in November and December 2020. However, sales started recovering
in January and February 2021.

The ongoing impact of the pandemic on two of the group?s largest product
categories of fruit juice and pies, compounded by the additional Covid-19
restrictions over the festive season, contributed to RFG reporting lower sales
volumes in the five months to February 2021 (?the period?), with sales growth
being driven mainly by price inflation.

Group turnover for the period increased by 1.3% to R2.3 billion, with major
declines in fruit juice and pies offsetting good growth from other categories.

Regional segment
Turnover in the group?s regional segment for the period increased by 1.5%.

Regional long life turnover grew by 3.2%, with price inflation of 10.0% and a 6.2%
decline in volumes. Fruit juice and pie declines offset good growth from other

Dry foods and canned vegetables performed well, both reporting double digit
sales growth. Fruit juice, which was the strongest performing category in the
comparative period, was adversely impacted by the Covid-19 restrictions on
entertainment and leisure activities during the summer holiday season as well as
the delay in the start of the school year from January until February 2021. The
category is now showing a recovery, with February 2021 sales down by only
7.6% year-on-year.

Long life foods sales into the rest of Africa grew by a strong 14.8%.

Regional fresh foods turnover declined by 1.4% over the period, with price
inflation of 3.2% and volumes being 4.4% lower. The reduced travel and holidays
over the festive season resulted in a slowdown in convenience and forecourt
traffic which adversely impacted pie and bakery sales.
The consolidation of the KwaZulu-Natal pies and pastries operation into the
group?s Gauteng pie and bakery facilities, as reported in the group?s financial
results in November 2020, was successfully completed. This consolidation,
together with the rationalisation of associated commercial operations, resulted in
once-off retrenchment and closure costs of approximately R14 million and an
impairment of properties of approximately R18 million. The group expects to raise
approximately R24 million from the disposal of these properties in the second

Following the restructuring, the group expects to realise savings of R26 million on
an annualised basis. The centralisation of the pie facilities has created a more
efficient operating structure which positions the business for growth in this key

Shareholders should note that the group is facing a very high sales base for the
month of March 2021. The regional segment reported sales growth of 22.2% for
March 2020, driven by strong customer demand and panic buying following the
declaration of the state of emergency and the introduction of the national
lockdown. This base effect is expected to negatively impact sales growth rates
for the month and the six-month period ending March 2021.

International segment
Sales for the period increased by 0.6%. Export volumes declined by 6.4% and
this was offset by inflation of 7.4% as the Rand depreciated by 5.3% against the
group?s basket of trading currencies over the period. Demand for the group?s
canned fruit products has been strong across all its international markets.
Logistical challenges, including the shortage of empty shipping containers, has
constrained volumes in the short term, but this backlog is expected to be caught
up in March 2021. The deciduous fruit season is progressing well and normal
volumes are expected to be produced.

Interest payments
Shareholders are advised that interest payments for the six months to March
2021 are expected to be approximately R20 million lower than the prior interim
period owing to a combination of the group?s lower debt levels and the significant
reduction in borrowing rates.

While the consumer spending environment is likely to remain constrained in the
short to medium term, the further lifting of lockdown restrictions with the country?s
move to alert level 1 this week is expected to contribute to a sustained recovery
in the juice and pie categories. The relaxation of restrictions is also positive for
the hospitality sector which should benefit the group?s sales in the food service
channel. The group enjoyed strong growth in sales into the rest of Africa in the
first half of the year and management expects this to be maintained in the second
six months. International sales are anticipated to gain momentum into the second
half of the year.

The once-off restructuring costs incurred in the first half of the year are expected
to be compensated by the non-recurrence in the period of the losses of R48.8
million on the mark-to-market revaluation of foreign exchange contracts in the
international segment in the first half of the 2020 financial year.

The financial information in this trading update is the responsibility of the
directors and has not been audited, reviewed or reported on by the group?s
independent external auditors.

The group?s interim financial results for the six months to March 2021 will be
released on the Stock Exchange News Service of the JSE on 19 May 2021.

Groot Drakenstein
4 March 2021

Rand Merchant Bank (A division of FirstRand Bank Limited)

Date: 04-03-2021 09:07:00

Supplied by
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.