2022
INVESTOR PRESENTATION
05 SEPTEMBER 2022
RESULTS FOR THE YEAR ENDED JUNE 2022
PAUL CRUICKSHANK
CHIEF EXECUTIVE OFFICER
SALIENT | STRATEGIC | FINANCIAL | OPERATIONAL | |||||
FEATURES | REVIEW | REVIEW | REVIEWS | PROSPECTS | ||||
KEY HIGHLIGHTS FOR THE YEAR ENDED JUNE 2022
RESILIENCE AMIDST A CHALLENGING OPERATING ENVIRONMENT
Forward momentum despite a difficult operating environment
- Constrained consumer with rising inflation and record unemployment
- Continued commodity input cost increases
- Our response: strategic focus on controllables with sharpened strategy and prioritised operational execution on key imperatives
Pleasing Revenue & EBITDA growth of 10.2% and 7.7% respectively
- Sustained market share growth in value-add categories
- Resilient volumes across most categories in Groceries
- Prioritised innovation into value offerings across the portfolio
- Continued strong Sugar performance
- Return to profitability in Rainbow with good turn-around momentum
- Continued improved performance in Vector Logistics
- Prior year benefitted from inclusion of additional trading week
HEPS improvement of 9.9% driven by EBITDA improvement
REVENUE R34.9bn
EBITDA R2.6bn
HEPS 118.6c
CASH | R3.4bn |
generated by | |
operations |
10.2%
7.7%
9.9%
110.6%
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SALIENT | STRATEGIC | FINANCIAL | ||
FEATURES | REVIEW | REVIEW | ||
UNDERLYING EBITDA & GROWTH (%) PER BUSINESS UNIT KEY HIGHLIGHTS FOR THE YEAR ENDED JUNE 2022
EBITDA & GROWTH (%) PER BUSINESS UNIT
OPERATIONAL | PROSPECTS |
REVIEWS |
Resilient Groceries performance
in total. A strong Grocery
result with market share gains and good volume growth was offset by service level challenges and margin pressure in Pies and Beverages.
-1%
558 550
Despite good volume | Sugar produced another | Good progress in Rainbow's | Vector Logistics | ||
growth in Bread, Buns and | excellent performance with the | turnaround strategy, driven | momentum continued with | ||
Rolls and pleasing Milling | second highest profit on | by improvements in | good progress in the | ||
improvements, elevated | record. Enabled by continued | pricing, agricultural | integration of the ICL* | ||
wheat and fuel costs placed | operational efficiency, | results, partially countered | network and a recovery in | ||
Baking margins under | complete cane crush and | by commodity cost increases. | food service volumes closer | ||
pressure | stable local market demand | to pre-COVID-19 levels | |||
-9% | |||||
900 | |||||
817 | |||||
-6% | |||||
521 | 488 | NM | +18% | ||
347 | 283 | 335 | |||
17 |
2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
GROCERIES | BAKING | SUGAR | RAINBOW | VECTOR LOGISTICS |
4
- Imperial Logistics South Africa Proprietary Limited's cold chain business
SALIENT | STRATEGIC | FINANCIAL | OPERATIONAL | |||||
FEATURES | REVIEW | REVIEW | REVIEWS | PROSPECTS | ||||
PROGRESS WITH STRATEGIC TRANSFORMATION JOURNEY
BUILDING A PROFITABLE, SUSTAINABLE VALUE-ADDED CONSUMER BUSINESS OF SCALE
Good progress made with managed separation of Rainbow and Vector Logistics from RCL FOODS
Successful legal and operating model separation of Rainbow, running
largely as an autonomous subsidiary of RCL FOODS, laying the platform for complete separation in future
Sugar remains part of RCL FOODS, with its separation plan being de- prioritized
Foundations for a focused value-added business through:
- A re-engineered and more integrated executive structure
- A more focused organisation structure with investment in key capabilities
- A revised branded portfolio strategy to drive profitable growth
1
2
3
VALUE-ADDED BUSINESS
GroceriesBaking
LiveKindly Spreads**
Collective
Africa*
SUGAR
RAINBOW
VECTOR LOGISTICS
5 | |
*49.999% Joint Venture | ** Siqalo Foods Proprietary Limited, managed on behalf of Remgro | |
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RCL Foods Limited published this content on 05 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2022 05:19:03 UTC.