RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
ISIN: ZAE000179438
Share Code: RCL
(“RCL FOODS" or “the Company” or “the Group”)

GROUP FINANCIAL RESULTS FOR THE SIX MONTHS ENDED DECEMBER 2022

  •   Revenue up 17.6% to R 20,2 billion
  •   Earnings before depreciation, amortisation and impairment
      (EBITDA) down 8.9% to R 1 177,7 million
  •   Underlying* EBITDA down 9.2% to R 1 248,2 million
  •   Headline earnings per share (HEPS) down 22.4% to 56.4 cents
  •   Earnings per share (EPS) down 22.0% to 57.6 cents

*The underlying view of the results excludes material once-offs
and accounting adjustments. Refer to the “Reconciliation between
unadjusted and underlying results” section provided as part of the
full announcement for further details.

RCL FOODS delivered a resilient set of results for the six months
ended December 2022      amidst   challenging   trading  conditions.
Sustained   high   commodity    input   prices,   above-inflationary
increases in other costs and unprecedented levels of load shedding
had a notable impact on the current period. The lower result was
mainly attributable to declines in Rainbow and Baking. With the
Rainbow and Vector Logistics separation processes still in
progress, and considering the impact of the ongoing external
pressures described above on the Group, the directors have
resolved not to declare an interim dividend in order to preserve
cash while the Group repositions its portfolio.

RCL FOODS Value-Added Business (consisting of the Groceries,
Baking and Sugar business units) delivered a resilient set of
results in a declining market. The Groceries business sustained
its high market shares but was significantly challenged by load
shedding, which particularly impacted service levels in the first
quarter. Industrial action at both the Grocery and Pies facilities
also contributed to higher costs and production downtime. Volumes
came under pressure in Baking, largely resulting from price
increases implemented to counter high wheat and maize prices.
Sugar produced a good result, aided by volume growth and higher
prices, but partially offset by high energy and fertiliser costs.

Rainbow’s turnaround was hampered by high feed input costs, poor
agricultural performance and the impact of load shedding. Higher
volumes   and  pricing,   coupled  with   an   improved     mix   were
insufficient to offset the higher input costs.

Despite good revenue growth, Vector Logistics’ result was dampened
by cost pressures. Progress with the final phase of the network
consolidation has yielded cost and scale benefits, though this was
offset by the direct cost impact of load shedding, electricity
price hikes and higher fuel costs in the current period.

The   contents   of   this    short-form   announcement     are   the
responsibility of the board of directors of the Group.

Shareholders are advised that this         short-form announcement
represents a summary of the information contained in the full
announcement and does not contain full or complete details as
published in the full announcement published on The Stock Exchange
News     Service    and     on    the     RCL     FOODS   website,
www.rclfoods.com/financial-results-and-reports-2023/ on 6 March
2023.

The consolidated interim financial statements for the current
period were reviewed by PricewaterhouseCoopers Inc., who expressed
an unqualified opinion thereon. The reviewed consolidated interim
financial statements and the auditor’s report thereon are
available   for    inspection   on    the   RCL    FOODS  website,
www.rclfoods.com/financial-results-and-reports-2023/.

Any investment decisions by investors and/or shareholders should
be based on a consideration of the full announcement as a whole
and shareholders are encouraged to review the full announcement,
which        is        available       for        viewing        at
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/RCL/06032023.pdf
or on the Group’s website set out above. Copies of the full
announcement may be inspected at the Group’s registered office and
offices of its sponsor at no charge, during office hours of 08h00
to 16h30, Monday to Friday. Investors and/or shareholders may also
request copies of the full announcement by contacting the Company
secretary at lauren.kelso@rclfoods.com or on 031 242 8500.

Durban
6 March 2023


Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)