RCL FOODS reports strong performance, increases dividend by 71%

RCL FOODS reported a 1.8% increase in revenue from continuing operations to R26.5 billion, with underlying EBITDA from continuing operations rising 7.9% to R2,390.6 million. This growth was attributed to a strong turnaround in baking and pleasing groceries results, despite a decline in sugar and subdued market conditions. Headline earnings per share (HEPS) from continuing operations grew by 28.5% to 156.3 cents, while total earnings per share (EPS) saw a slight decrease of 1.3% to 180.1 cents.

The company declared a total dividend of 60.0 cents per share for the 2025 financial year, a significant increase from 35.0 cents per share in 2024. This includes a gross final cash dividend of 40.0 cents per share (32.0 cents net of dividend withholding tax). The results also noted a non-cash gain of R198.5 million from the unbundling of Rainbow.

Within segments, groceries improved due to a favorable product mix in pet food and operational efficiencies. Baking saw a strong turnaround driven by NRM and CI initiatives, while sugar delivered a strong absolute result despite increased imports and reduced consumer demand.