Rhodes and Bull Brand owner RFG earnings for the interim period have increased despite constrained consumers and logistics challenges.
The food producer released its results for the six months ended 3 April 2022 on Wednesday which showed that its earnings increased by 17% to R359 million and its headline earnings per share had grown by 32.5% to 60.3 cents.
RFG said it capitalized on opportunities to grow its market share for canned fruit, jams, corned meat, fruit juice and baby meals despite South African consumers being under pressure and logistics challenges affecting exports.
Its long life division’s revenue jumped by 16.4% and achieved volume growth of 13.4%.
“Fruit juice and dry foods continued to deliver strong sales growth with both categories achieving double-digit sales growth, which contributed to increased market share in these highly competitive categories,” said RFG.
ALSO READ: Food producer Tiger Brand’s earning decreases due to strike
The group added that ready meals have proven to be resilient despite weak consumer spending.
However, meat price inflation and increased competition continued to put pressure on margins, warned RFG.
“The group’s ongoing focus is on recovering increased input costs from the market and generating operating efficiencies to counter the impact of cost pressure on margins,” RFG said about its plans for the second half of the year.
Source: Fin 24
