RCL Foods (RCL) FY23 – Results Snapshot

Diluted HEPS from continuing operations of 60.2 cps (FY22: 110.6 cps).
Revenue growth of 17.3% y-y (FY22: 10.2% y-y).
EBITDA margin decreased substantially from 7.0% to 4.5%.
Operating margin decreased by 250bps to 2.1% (FY22: 4.6%).
Net expense to sales ratio of 97.9% (FY22: 95.4%).
PBT margin decreased to 1.8% (FY22: 4.1%).
No dividend (FY22: 45 cps).
Difficult trading environment placed pressure on margins and volumes.
Load-shedding impacted all operations, adding R158.3m to total costs for continuing operations.
Special levy imposed on sugar industry impacted earnings significantly.
Agricultural commodity input costs biggest contributor to pressure experienced on margins for RCL Foods.
Vector Logistics disposal completed on 28 August 2023.