Rainbow Chicken says it expects its earnings for the year to end-June to surge more than threefold, driven by higher sales volumes, improved operational performance and reduced costs.
In a trading statement on Monday, the poultry producer said headline earnings per share (HEPS), a key profit measure, were projected to range between 63.55c and 67.60c, an increase of 214% to 234% from 20.26c in the previous year.
The group attributed the growth to stronger agricultural and operational results, lower commodity input costs and a decline in expenses linked to energy load-shedding and avian influenza. Lower finance costs, following improved profitability and recapitalisation ahead of its unbundling, also contributed to the gains.
Rainbow was unbundled from RCL Foods and was separately listed on the JSE in July last year. The company’s share price has surged 20% since listing with its market capitalisation edging close to R4bn.
The company will release its full year results on August 28.
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