Rhodes Food H1 net profit jumps 89.2% to R110m

Image sourced from Rhodes Food Group

Rhodes does not pay an interim dividend. Its policy is to pay a third of its diluted headline earnings per share (HEPS) at its financial year to end-September.

Its interim revenue included sales from acquisitions Pacmar, Boland Pulp, Saint Pie, and Deemster for the full six months while General Mills was included for four months and Alibaba Foods for two months. These acquisitions contributed 37.4% to the growth in turnover.

The severe drought affecting large parts of SA had had only a limited effect on the group, CEO Bruce Henderson said in the results statement. But if the drought persisted, it could hurt the group's production costs and volumes in the second half of its financial year.

Rhodes, whose brands include Bull Brand, Magpie and Squish, said it intended to grow rapidly organically and via acquisitions. Rhodes supplies private label food products to a number of local and international retailers.

"Momentum will be maintained on expanding the group's presence in sub-Saharan Africa and growing the international business," it said.

"The recent acquisitions should perform strongly in the second half and entrench the group's position in the new categories of fruit juice, baby food, bottled salads and pickles, and bakery products," Henderson said.

Source: BDpro