Food producer RCL has warned earnings could fall by as much as 45% for the six months to end-December, highlighting pressure on its operations.
The group said HEPS is forecast to at 74.3c-77.5c, compared with 109.4c previously. The company said headline adjustments were insignificant, indicating the fall reflects underlying trading performance.
RCL previously said that its sugar business took a knock from tough industry conditions as a surge of low‑priced sugar imports flooded the local market and pushed more of its product into exports, where prices were far weaker.
The group said this displacement and the lower international pricing had a materially negative effect on the unit’s performance. It added that the local market had not been fully protected from the influx of imported deep-sea sugar.
RCL will release its interim results on March 2.
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