RCL Foods, formerly known as Rainbow Chicken, has seen full-year earnings plummet despite a jump in sales as weaker margins hit the bottom line.
In a regulatory filing, the South African poultry group said headline earnings sank to ZAR18m (US$1.7m) in the year to 30 June, down from ZAR267m in 2012. Operating profit fell to ZAR166m, down from ZAR414m last year.
The operating result was hit by higher amortisation and depreciation as well as increased costs – particularly related to higher feed prices.
Sales, however, surged 28.7%, climbing to ZAR10bn, boosted by the acquisition of FoodCorp.
The company said it is committed to becoming a diversified food business “of scale” in sub-Saharan Africa.
Click here for the full earnings statement from the company.