2018-08-16

RCL - trading statement


Shareholders are advised that RCL FOODS expects that its headline earnings per share (“HEPS”) for the year ended June 2018 will be between 90.0 cents (+41.7%) and 100.0 cents (+57.5%) when compared to the reported HEPS of 63.5 cents for the year ended June 2017 (“corresponding period”).

Earnings per share (“EPS”) for the year ended June 2018 is expected to be between 100.0 cents (+67.5%) and 110.0 cents (+84.3%) when compared to the reported EPS of 59.7 cents for the corresponding period.

The improvement was driven by the recovery in the Chicken business unit, strong volume performances in the Dressings, Pet Food and Pies categories, lower interest costs and a tax credit related to a S12L energy efficiency allowance. Chicken benefited from the positive impact of the revised business model (lower commodity exposure) implemented in February 2017 and lower feed input costs, partially offset by the negative impacts of Avian Influenza and the Listeriosis crisis. The Sugar business unit has been adversely impacted by continued high levels of imports.

EPS for the year ended June 2018 is expected to be higher than HEPS largely due to profits from the sale of dormant farms, resulting from the implementation of the revised Chicken business model.

The Group's financial results for the year ended June 2018 are expected to be released on SENS on 28 August 2018.