RCL Foods’ share price soared 16.1% to 1139 cents on Monday after it lifted headline earnings per share a massive 723.7% to 107.9cents in the year to June 30.
Management said the financial performance had been driven by a strong performance in the Sugar and Baking business units and continued robust delivery in grocery.
The food division delivered a strong result, with a record performance in sugar, which benefited from higher demand, strong cost control and improved sales mix.
According to chief financial office Rob Field, the sugar division benefited from a bigger share of generally improved sugar industry proceeds, aided also by a higher sugar price.
“It just goes to show how well this industry can do when things work in the right direction,” said Field.
Baking’s improvement was driven by higher volumes and a turnaround at the Gauteng bakeries. In addition, the division also used a low percentage of flour to bake bread compared with its competitors, indicating a potential area of growth, said Field.
Pleasing growth in Groceries was aided by a good recovery in pies, and a continued strong performance by the grocery operating unit, added Field.
All business units in the Groceries division benefited from increased in-home consumption and associated higher demand for pantry essentials.
