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RCL FOODS LIMITED - Group financial results and cash dividend declaration for the year ended June 2021

Release Date: 06/09/2021 07:05
Code(s): RCL     PDF:  
Wrap Text
Group financial results and cash dividend declaration for the year ended June 2021

(Incorporated in the Republic of South Africa)
ISIN: ZAE000179438
Share Code: RCL
(“RCL FOODS" or “the Company” or “the Group”)


  -   Revenue up 14.0% to R 31,7 billion
  -   Earnings before depreciation, amortisation and impairment
      (EBITDA) up 47.3% to R 2 409,1 million
  -   Underlying* EBITDA 45.8% to R 2 530,4 million
  -   Headline earnings per share (HEPS) up 723.7% to 107.9 cents
  -   Underlying* HEPS up 166.9% to 117.7 cents
  -   Earnings per share (EPS) up 208.5% to 111.8 cents
  -   Underlying* EPS up 181.5% to 121.6 cents
  -   Total dividend declared 45.0 cents (June 2020: 25.0 cents)

*The underlying view of the results excludes material once-offs
and accounting adjustments. Refer to the “Reconciliation between
unadjusted and underlying results” section provided as part of the
full announcement for further details.

RCL FOODS is proud to present a good set of results for the year
ended June 2021, driven by an excellent performance in the Sugar
and Baking business units and continued strong delivery in
Grocery. Notwithstanding the strong topline growth, input pricing
pressure has continued to build in certain business units during
the past year due to a significant rally in agricultural commodity

The Food Division delivered a strong result, with a record
performance in Sugar, which benefited from higher demand, strong
cost control and improved sales mix. Baking’s improvement was
mainly driven by higher volumes and a successful turnaround at the
Gauteng bakeries. Groceries delivered pleasing growth aided by a
good recovery in Pies and continued strong performance by the
Grocery operating unit. All business units continued to benefit
from increased in-home consumption and associated higher demand
for pantry essentials. A focus on internal cost control and
progress against key strategic imperatives supported the
division’s positive overall result.

The Chicken Division’s results continues to be negatively impacted
by breed performance challenges, significant raw material cost
increases and the lingering impacts of the initial COVID-19
lockdown, compounded by Avian Influenza and, to a lesser extent,
industrywide challenges with Salmonella Enteritis impacts.

Vector Logistics delivered an improved performance for the current
reporting period mainly due to the take-on of new business and
consolidation of the duplicate networks following the acquisition
of Imperial Cold Chain (ICL) business in the prior period.

EPS for the comparative period was higher than HEPS largely due to
the impairments recognised, which was excluded from the
calculation of HEPS.


Notice is hereby given that the directors have declared a final
gross cash dividend (number 93) of 30.0 cents (24.0 cents net of
dividend withholding tax) for the year ended June 2021.

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

The salient dates for the dividend will be as follows:

Publication of declaration data            Monday, 6 September 2021
Last day of trade to receive a dividend    Tuesday, 26 October 2021
Shares commence trading “ex” dividend      Wednesday, 27 October 2021
Record date                                Friday, 29 October 2021
Payment date                               Monday, 1 November 2021

Share certificates may not be dematerialised or rematerialised
between Wednesday, 27 October 2021 and Friday, 29 October 2021,
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, on 6 September 2021.

With respect to the consolidated financial statements for the year
ended June 2021, 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,

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
or on the Group’s website set out above. Copies of the full
announcement may be inspected at the Group’s registered office and
offices of its sponsor at no charge, during 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 or on 087 362 8501.

6 September 2021

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 06-09-2021 07:05:00
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