Food maker RFG, the owner of the Rhodes, Ma Baker, Hinds, Squish and Southern Coating brands, will see headline earnings increase between 35% and 40% to April 3, as it was able to put up prices, even as volumes dropped.
Its headline earnings for the previous period were R158m.
JSE-listed firms must tell the market when earnings will be at least 20% higher or lower than the year before.
The increased profit is also due to a better performance in its pie division and the inclusion of the new Today pie business, with the purchase finalised in 2022, meaning the new business earnings were not include in the base.
RFG said headline earnings per share would be between 81.5c and 84.5c up from 60.4c
It noted that consumers in SA were constrained, leading to lower volumes sold in response to it having lifted prices.
Food producers face a tough balancing act between putting up prices to absorb rising input costs, and trying to ensure consumers don’t buy fewer products.
It said its fruit juice and dry foods businesses were growing.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.