(Ecofin Agency) – In South Africa, Rainbow Chicken is the second major player in the poultry market behind Astral Foods. The company, which has been autonomous since shortly after its split from RCL Foods, closed its 2024 fiscal year in the green.
In South Africa, Rainbow Chicken, one of the leaders in poultry production, recorded a net profit of 169.6 million rand ($9.7 million) at the end of its 2024 fiscal year which ended on 30 last June.
A year earlier, the food company reported a net loss of 299.9 million rand ($17.2 million). The improvement was mainly attributed to a 7.9% year-on-year improvement in revenue to 14.5 billion rand ($834 million).
“The overall gain compared to the previous period can be attributed to better agricultural performance, higher processing yields, effective cost management, improved sales prices, increased channel volumes. retail and wholesale, lower commodity prices as well as reduced load shedding costs,” can we read in the company’s financial results.
In addition to the revenue growth, the company also reported a reduction in its net financing costs of 43.2 million rand ($2.5 million) which helped ease financial charges.
According to officials, this drop in financing costs is linked to the split with the agri-food company RCL Foods as part of its listing on the Johannesburg Stock Exchange in June 2024. “The impact of this demerger has resulted in the cessation of depreciation and associated deferred tax impacts until June 30, 2024,” says the company.
In South Africa, Rainbow Chicken controls approximately 18.5% of the poultry market share, according to data from the South African Poultry Association (SAPA). The company operates 5 chicken processing plants there.
Stéphanas Assocle
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