Following its separation from RCL Meals earlier this 12 months, the primary monetary outcomes have been printed for Rainbow Rooster Ltd as an unbiased enterprise.
Offered within the report are info and commentary extracted from the monetary statements printed by RCL Meals in September. Masking the fiscal years ending June 2023 and June 2024, they’re meant to offer Rainbow shareholders with direct entry to the outcomes of Rainbow.
General, the corporate sees its bettering outcomes pushed by the continuing execution of its turnaround plan.
Among the many headline figures are a 7.9% improve in income for the 12 months simply ended to greater than 14.5 billion rand (ZAR; US$837 million). That is attributed to a mixture of a larger quantity of gross sales by means of retail and wholesale channels, in addition to greater promoting costs.
Profitability has improved considerably. From ZAR29.8 million for the 12 months to June of 2023, Earnings Earlier than Curiosity, Taxes, Depreciation, Amortization and Impairments (EBITDA) for the most recent 12 months was just below ZAR630 million. As a consequence, EBITDA margin improved by 4.1 proportion factors from 0.2 to 4.3% over the identical interval.
The corporate attributes these constructive developments to a spread of things. It mentions enhancements in agricultural efficiency, processing yields, value administration, gross sales costs, volumes offered by means of retail and wholesale channels, decrease feed ingredient prices, and a extra dependable energy provide.
Avian flu prices hit Rainbow’s backside line
In distinction to those constructive developments in its enterprise, Rainbow Rooster put its prices attributable to extremely pathogenic avian influenza (HPAI) over the 12 months simply ended at virtually ZAR203 million.
The monetary affect arose primarily from the necessity to import hatching eggs, greater feed prices from prolonged flocks, secure disposal of culled birds, and extra cleansing and disinfection processes.
To scale back the danger of an outbreak in its breeding birds, the corporate swiftly relocated its Midrand breeder farm to an space of decrease poultry density.
It seems that Rainbow opted to not take part in a government-backed vaccination program. Whereas supporting the program in precept as a way to guard South African flocks, Rainbow judged it to be too advanced and expensive to implement for its birds.
Future prospects
Shoppers in South Africa proceed to be beneath monetary pressures, and commodity costs stay at excessive ranges by historic requirements, the corporate notes in its report. Nevertheless, efficiency by Rainbow Rooster for the approaching 12 months is predicted to proceed to profit from continued enhancements in agricultural efficiency and increasing gross sales.
In the meantime, the corporate is about to give attention to adjusting to its separation from RCL Meals.
On the finish of this month, audited outcomes are scheduled to be printed for Rainbow Rooster. These are anticipated to vary from the monetary statements when Rainbow was nonetheless a part of RCL Meals, and to embody a reconciliation of those variations.
Extra on Rainbow Rooster
As a part of RCL Meals, Rainbow Rooster was the second largest poultry producer in South Africa — and the African continent. Manufacturing amounted to round 197 million chickens in 2023, in line with WATTPoultry.com’s Prime Poultry Corporations survey.
Over a time frame, RCL Meals unbundled its rooster enterprise, and Rainbow Rooster was listed on the Johannesburg Inventory Alternate on June 26 of this 12 months.
