Rhodes Food Group reported higher annual sales and profits

Rhodes Food Group reported higher annual sales and profits

South African convenience foods maker Rhodes Food Group has reported a rise in full-year profits on the back of increased sales.

For the year to 27 September, headline earnings per share rose 136% to 87.4 cents.

Net income increased to ZAR169.8m (US$12m) from ZAR82.5m a year earlier. Profit before income tax increased to ZAR289.4m from ZAR236.1m

Revenues rose to ZAR3bn from ZAR2.4bn.

Rhodes said in its regional business, sales rose 32.5% to ZAR2.1bn "with market share gains in key product categories and significant growth in the relatively new channels of wholesale and sub-Saharan African markets".

International sales improved in the second half of the year, ultimately growing 7.1% for the year.

"The group will continue to drive organic growth through gaining market share in both the Fresh Foods and Long Life segments, realising the benefits of the ongoing turnaround in Bull Brand and increasing sales in sub-Saharan Africa," the firm said in a statement.

"The acquisitions concluded during 2015 will all be earnings accretive from 2016. The two major acquisitions, Pacmar and Boland Pulp, have both performed well since being integrated and are expected to perform strongly in the 2016 financial year."