RFG Holdings (RFG) 1H24 – Results Snapshot

Diluted HEPS of 99.8 cps (1H23: 82.9 cps).
Revenue growth of +3.2% y-y (1H23: +10.2% y-y).
GPM up +90 bps to 25.6% (1H23: 24.7%).
Operating margin up to 10.2% (1H23: 9.2%) as the Group recovered inflationary increases on raw material and packaging costs and extracted cost savings.
Expense to sales down to 15.7% (1H23: 15.9%), with load shedding costs reducing from R37.8 million in 1H23 to R19.6 million in 1H24.
Dividend of 62.0 cps (1H23: 45.8 cps).
Revenue in Regional segment posted a 5.8% y-y growth with price inflation of 10.0% while sales volumes declined by 5.5%.
International segment revenue declined by 8.6% y-y due to softer international pricing as well as the decline in export volumes due to lower opening stock levels.
Net cash outflow from operations at -R48.2 million was R38.3 million lower than 1H23 due to the lower investment in working capital and improved profitability, partially offset by an increase in income tax payments of R55m.