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 AND CASH DIVIDEND DECLARATION FOR THE YEAR
ENDED 30 JUNE 2024

   •   Revenue from continuing operations* up 6.8% to R26,0 billion
   •   Earnings before interest, tax, depreciation, amortisation and
       impairments (EBITDA)from continuing operations up 36.8% to
       R2 300,5 million
   •   Underlying** EBITDA from continuing operations up 15.5% to
       R2 216,1 million
   •   Headline earnings per share (HEPS) from continuing operations
       up 31.0% to 121.6 cents
   •   Underlying HEPS from continuing operations up 8.3% to 127.7
       cents
   •   Total earnings per share (EPS) up 163.2% to 182.4 cents
   •   Total HEPS up 108.1% to 142.1 cents
   •   Total dividend per share declared for the 2024 financial
       year: 35.0 cents per share (2023: Nil)

*Continuing operations relates to the remaining RCL FOODS business, post the
Vector disposal in August 2023 and Rainbow unbundling effected post the end of
the current financial year, on 1 July 2024. The remaining RCL FOODS business
comprises the Groceries, Baking, Sugar and Group (shared services) segments.

**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 summary consolidated financial
statements for further details.



RCL FOODS has delivered a pleasing set of full-year results
despite softer consumer demand. Group revenue from continuing
operations increased by 6.8% to R26,0 billion (2023: R24,3
billion), mainly due to higher sales pricing necessitated in
response to sustained high input costs. EBITDA from continuing
operations increased by 36.8% to R2 300,5 million (2023: R1 681,6
million). This was mainly driven by a strong result in our Sugar
business unit and the recovery of service levels in the Pet Food
business within Groceries.

We are proud to have successfully delivered on two key objectives
in our portfolio reshape, first with the disposal of Vector
Logistics (in August 2023) and now Rainbow (on 1 July 2024) exiting
the Group to pursue its own value-creation course. The Vector
Logistics business was disposed of on 28 August 2023 to EMIF II
Investment Proprietary Limited, a subsidiary of Denmark-based A.P.
Møller Capital. To ensure a smooth separation from the Group, RCL
FOODS provided transitional services to Vector Logistics for a 12-
month period which came to an end on 28 August 2024. The Rainbow
business, which was separated internally from RCL FOODS in the 2022
financial year to prepare it for independent operation, listed on
the Main Board of Johannesburg Stock Exchange (JSE) on 26 June
2024. The unbundling of Rainbow from the RCL FOODS Group by way of
a pro rata distribution in specie became effective from 1 July
2024. To assist in ensuring a responsible exit from the Group and
to allow sufficient time for Rainbow to capacitate, RCL FOODS is
continuing to provide certain transitional services for a two-year
period on an arm’s length basis.

Groceries reported an improved underlying EBITDA result, stemming
primarily from improved service levels, a more favorable mix and
higher margins in the Pet Food business, whose prior year result
was compromised by the higher levels of load-shedding. Despite
value tier innovations continuing to perform well, overall volumes
in the Culinary business came under pressure. The Beverages
operating unit improved on the comparative period due to a
favorable mix, lower stock returns and operational efficiencies.

The Baking business unit underlying EBITDA result was down on the
comparative period as gains in the Milling and Speciality
businesses were offset by a disappointing performance in Bread,
Buns and Rolls. This operating unit faced intense competition and
margin pressure during the year, with a significant increase in
input costs necessitating a price increase which led to a decrease
in sales volumes. The Milling operating unit achieved an improved
result, through better cost control in production and distribution,
as well as an enhanced product and channel sales mix. The Pies
operating unit benefitted from a restoration of service levels and
improved margins, though volumes remain under significant pressure
due to lower demand in the Retail and Forecourts channels. Despite
facing volume pressure, Speciality delivered a good performance and
maintained margins through cost savings and efficiencies resulting
from continuous improvement initiatives.

The Sugar business unit reported a significant improvement in
underlying EBITDA, largely due to higher prices in both the local
and export markets, an outstanding result in Molatek Animal Feed
due to improved production efficiencies offsetting a higher
molasses price. The resilience of the Sugar business unit has been
substantially strengthened in the past year through ongoing
operational improvements and cost saving initiatives.

Discontinued operation - Rainbow

Rainbow reported a significant improvement in underlying EBITDA.
The overall gain can be ascribed to an enhanced agricultural
performance, higher processing yield, effective cost management,
improved pricing, increased retail and wholesale channel volumes,
relief in commodity prices (albeit still at elevated levels) as
well as reduced load-shedding costs. The turnaround at Rainbow is
now well advanced, with every component of the process yielding
positive results.

Cash Dividend Declaration

With Rainbow’s unbundling now complete, RCL FOODS has resumed the
payment of dividends. The Board of directors has approved a gross
cash dividend (number 97) of 35.0 cents per share (28.0 cents per
share net of dividend withholding tax) for the year-end June 2024.
In approving this dividend, amongst other regulatory requirements,
the Board has specifically considered the current profitability
and financial capacity of the Group post the recapitalisation of
Rainbow prior to its unbundling and the upcoming debt refinance
process ahead of the expiry of the existing term-funded debt
package in December 2024.

The dividend has been declared from income reserves.

A dividend withholding tax of 20% will be applicable to all
shareholders who are not exempt.

The issued share capital at the declaration date is 890 296 405
ordinary shares. The Company’s income tax reference number is
9950019712.

The salient dates for the dividend will be as follows:

Publication of declaration data           Monday, 2 September 2024
Last day of trade to receive a dividend   Tuesday, 15 October 2024
Shares commence trading “ex” dividend     Wednesday, 16 October 2024
Record date                               Friday, 18 October 2024
Payment date                              Monday, 21 October 2024

Share certificates may not be dematerialised or rematerialised
between Wednesday, 16 October 2024 and Friday, 18 October 2024,
both days inclusive.

Shareholders are advised that this results announcement represents
a summary of the information contained in the summary consolidated
financial statements and does not contain full or complete details
as published on the RCL FOODS website, www.rclfoods.com/financial-
results-and-reports-2024/.


With respect to the audited consolidated financial statements for
the year ended June 2024, the auditors, Ernst and Young Inc., have
issued an unqualified audit opinion in terms of the International
Standards on Auditing. The auditors unqualified audit opinion in
terms of International Standards on Auditing, along with their key
audit matters and the audited consolidated annual financial
statements are available upon request by contacting the company
secretary at lauren.kelso@rclfoods.com or on +27 31 242 8500.

The summary consolidated financial statements is available for
viewing on the JSE link at
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/RCL/02092024.pdf
or on the Group’s website set out above.

Any investment decisions by investors and/or shareholders should
be based on a consideration of the summary consolidated financial
statements as this results announcement does not provide all the
details.


Westville
2 September 2024


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