Rainbow Chicken’s first year since spinning off from RCL Foods has been productive and profitable, the company announced.
The South African company, which was listed on the Johannesburg Stock Exchange on June 26, 2024, reported for the past fiscal year the following positive developments:
- Revenue from operations increased 9% to ZAR15.8 billion
- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 66.2% to R1.059 billion
- Earnings per share of 64.04 cents, up 216.3%
- Headline earnings per share (HEPS) at 65.57 cents, up 223.6%
“The group's turnaround strategy is far progressed, underpinned by enhanced feed quality, refined agricultural performance and disciplined cost management. These efforts, combined with lower commodity input costs and a reduction in expenses related to loadshedding and avian Influenza, have significantly contributed to improved profitability,” the company stated in its earnings release.
Revenue growth for the period, the company stated, resulted from an optimized sales channel strategy, enhanced product mix management, and higher volumes.
Rainbow’s Animal Feed Division demonstrated strong performance, achieving margin expansion by improving operational efficiency and effectively responding to market conditions, the company reported.
In recognition of this solid financial position, the Board of Directors has declared a cash dividend of 20.0 cents per share.
