RCL Foods expects to deliver an increase in earnings for the year to end-June, despite headwinds in its sugar business in the second half.
In a voluntary trading statement released on Thursday, the food producer said it expects headline earnings per share (HEPS), a profit measure that strips out one-off and non-trading items from total operations, to increase 5.6%-12.6%, to a range of 150c-160c. This compares with the 142.1c reported in the previous financial year.
Meanwhile, the company’s underlying HEPS from continuing operations is expected to rise by 9.6%-17.5%, to 140c-150c, from the 127.7c that was reported last year.
RCL attributed the slowdown in earnings momentum in the second half to the effect of sugar imports displacing local sales and lower global sugar prices. But the groceries and baking units continued to deliver strong results.
“The slowdown in the rate of growth from the first half of the current period was attributable to the sugar business unit’s performance in the second half of the current period being impacted by imports displacing local volumes as well as the lower world sugar price. The groceries and baking business units continued to perform well,” it said.
The company is set to publish its full-year results on September 1.
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