Shares in Rainbow Chicken jumped more than 10% on Wednesday morning after it said it was on track to more than double its profit for the six months to end-December, as its turnaround continues to yield results.
The group said in a statement that it expects HEPS for the period to range between 69.46c and 76.59c, up from 35.64c in the same period last year.
The growth is driven by a strong agricultural performance, improved operational efficiencies, robust demand for Rainbow’s products and lower feed costs resulting from reduced commodity prices.
Rainbow was unbundled from its parent company, RCL Foods, and listed as a standalone entity on the JSE in July 2024. The move was to allow both companies to focus on their core businesses while optimising capital allocation and unlocking shareholder value.
Shares in the group have surged more than 68% in the past year as investors show their support for its independence on the bourse. The shares are up 30% for the year to date, taking its market capitalisation to more than R5.7bn.
At 10.54am on the JSE, Rainbow’s shares were up 10.6% at R6.36.
The company will release its interim results on March 11.
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