RFG HOLDING’S SHARES SOAR ON BUMPER EARNINGS AFTER STRONG RECOVERY
| Dieketseng Maleke
African News Agency
SHARES in RFG Holdings which owns brands such as Rhodes, Bull Brand, Magpie, Squish, Bisto, Hinds, and Pakco leapt yesterday after it released a trading update for the 21 weeks ended April 2, saying headline earnings were expected to be between 35% and 40% higher. The shares increased by14.16% to close at R8.79 on the JSE yesterday, having decreased by 26.67% for the past six months. The group said headline earnings were expected to be higher than the R158.1 million reported for the 27 weeks ended April 3, 2022. “The group delivered resilient revenue growth, with strong trading performances by both the regional and in particular its international business in March. “Growth was driven by price inflation in an environment of lower sales volumes in certain product categories in the regional segment due to the constrained consumer environment,” it said. RFG said the regional operating profit margin improved strongly through the recovery of higher input costs from customers and the marked turnaround in sales and profitability of the pie category, including the successful integration and turnaround of its Today business acquisition. “This was supported by the continued growth in fruit juice and dry foods and improved performance in the meat category,” it said. RFG said the sustained strong international selling prices and the weakening of the rand against its basket of trading currencies contributed to the recovery of the international operating profit margin relative to the prior year.