New Risk • May 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South African stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (112% cash payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Upcoming Dividend • Apr 29
Upcoming dividend of R0.15 per share Eligible shareholders must have bought the stock before 06 May 2026. Payment date: 11 May 2026. Payout ratio is a comfortable 45% but the company is paying out more than the cash it is generating. Trailing yield: 7.1%. Lower than top quartile of South African dividend payers (7.9%). Higher than average of industry peers (5.1%). Declared Dividend • Mar 04
First half dividend of R0.15 announced Shareholders will receive a dividend of R0.15. Ex-date: 6th May 2026 Payment date: 11th May 2026 Dividend yield will be 6.3%, which is higher than the industry average of 5.2%. Sustainability & Growth Dividend is covered by earnings (49% earnings payout ratio) but not covered by cash flows (112% cash payout ratio). The dividend has increased by an average of 3.2% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 21% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Feb 03
RCL Foods Limited to Report First Half, 2026 Results on Mar 02, 2026 RCL Foods Limited announced that they will report first half, 2026 results on Mar 02, 2026 Announcement • Nov 13
RCL Foods Limited Approves Committee Appointments RCL Foods Limited at its AGM held on November 12, 2025 approved appointment of Election of members of the Audit Committee: Ms. GP Dingaan, Mr. DTV Msibi, Mr. GC Zondi and appointment of members of the Social and Ethics Committee: Mr. PD Cruickshank, Ms. GP Dingaan, Dr. PM Moumakwa, and Mr. GC Zondi. Upcoming Dividend • Oct 08
Upcoming dividend of R0.40 per share Eligible shareholders must have bought the stock before 15 October 2025. Payment date: 20 October 2025. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 6.5%. Lower than top quartile of South African dividend payers (8.2%). Higher than average of industry peers (4.0%). Reported Earnings • Sep 30
Full year 2025 earnings released: EPS: R1.59 (vs R1.33 in FY 2024) Full year 2025 results: EPS: R1.59 (up from R1.33 in FY 2024). Revenue: R26.5b (up 1.8% from FY 2024). Net income: R1.42b (up 20% from FY 2024). Profit margin: 5.4% (up from 4.6% in FY 2024). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Sep 26
RCL Foods Limited, Annual General Meeting, Nov 12, 2025 RCL Foods Limited, Annual General Meeting, Nov 12, 2025. Location: ten the boulevard, westway office park, westville South Africa New Risk • Sep 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South African stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R11.29, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 8x in the Food industry in South Africa. Total returns to shareholders of 56% over the past three years. Recent Insider Transactions • Sep 09
CEO & Executive Director recently bought R2.6m worth of stock On the 5th of September, P. Cruickshank bought around 270k shares on-market at roughly R9.74 per share. This transaction amounted to 32% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. P. has been a buyer over the last 12 months, purchasing a net total of R2.8m worth in shares. Declared Dividend • Sep 03
Final dividend of R0.40 announced Shareholders will receive a dividend of R0.40. Ex-date: 15th October 2025 Payment date: 20th October 2025 Dividend yield will be 6.2%, which is higher than the industry average of 5.2%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 39% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Sep 01
Full year 2025 earnings released: EPS: R1.59 (vs R1.33 in FY 2024) Full year 2025 results: EPS: R1.59 (up from R1.33 in FY 2024). Revenue: R26.5b (up 1.8% from FY 2024). Net income: R1.42b (up 20% from FY 2024). Profit margin: 5.4% (up from 4.6% in FY 2024). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Aug 07
RCL Foods Limited to Report Fiscal Year 2025 Results on Sep 01, 2025 RCL Foods Limited announced that they will report fiscal year 2025 results on Sep 01, 2025 Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R11.00, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 10x in the Food industry in South Africa. Total returns to shareholders of 70% over the past three years. Upcoming Dividend • Apr 30
Upcoming dividend of R0.20 per share Eligible shareholders must have bought the stock before 07 May 2025. Payment date: 12 May 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of South African dividend payers (8.4%). In line with average of industry peers (4.4%). Recent Insider Transactions • Mar 20
CEO & Executive Director recently bought R208k worth of stock On the 17th of March, P. Cruickshank bought around 21k shares on-market at roughly R9.80 per share. This transaction amounted to 2.7% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. P. has been a buyer over the last 12 months, purchasing a net total of R3.5m worth in shares. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R10.50, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 9x in the Food industry in South Africa. Total returns to shareholders of 12% over the past three years. Announcement • Feb 07
RCL Foods Limited to Report First Half, 2025 Results on Mar 03, 2025 RCL Foods Limited announced that they will report first half, 2025 results on Mar 03, 2025 Upcoming Dividend • Oct 09
Upcoming dividend of R0.35 per share Eligible shareholders must have bought the stock before 16 October 2024. Payment date: 21 October 2024. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of South African dividend payers (7.4%). Lower than average of industry peers (4.5%). Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to R9.85, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 11x in the Food industry in South Africa. Total returns to shareholders of 27% over the past three years. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Richard Rushton was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 01
RCL Foods Limited to Report Fiscal Year 2024 Results on Oct 31, 2024 RCL Foods Limited announced that they will report fiscal year 2024 results at 9:00 AM, South Africa Standard Time on Oct 31, 2024 Announcement • Sep 27
RCL Foods Limited, Annual General Meeting, Nov 14, 2024 RCL Foods Limited, Annual General Meeting, Nov 14, 2024. Location: ten the boulevard, westway office park, westville, South Africa Reported Earnings • Sep 03
Full year 2024 earnings released: EPS: R1.33 (vs R0.61 in FY 2023) Full year 2024 results: EPS: R1.33 (up from R0.61 in FY 2023). Revenue: R26.0b (down 31% from FY 2023). Net income: R1.19b (up 118% from FY 2023). Profit margin: 4.6% (up from 1.4% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year and the company’s share price has also fallen by 7% per year. Announcement • Sep 02
RCL Foods Limited Approves Gross Cash Dividend, Payable on October 21, 2024 RCL Foods Limited 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. The salient dates for the dividend will be as follows: Last day of trade to receive a dividend Tuesday, 15 October 2024; Record date 18 October 2024; Payment date 21 October 2024. Announcement • Aug 30
RCL Foods Limited Announces Changes to the Board and Board Committees RCL Foods Limited announced changes to the Board and its committees, with effect from 3 September 2024. The following directors have notified the Board of their intention to step down from the Board: Mr. Jannie Durand - who in his role as the Chief Executive Officer of Remgro Limited has been a member of the Board for more than 14 years and served as Chairman for more than 12 years. In line with tenure term considerations, Mr. Durand has indicated that he will not stand for reappointment as Chairman of the Board. Over the years Mr. Durand's leadership, combined with his knowledge and expertise in navigating challenges have been invaluable to the Board and the Company. Whilst Mr. Durand's absence will be felt, his departure also presents an opportunity for the Board to appoint an independent chairperson. This opportunity was both championed and supported by him. Mr. Hein Carse - who steps down as a consequence of his retirement from his employment with Remgro. Mr. Carse has been a member of the Board since 1 February 2013. Mr. Pieter Louw - who steps down to focus on his other commitments in the broader Remgro Group, which include his recent appointment as Chairman of the board of Rainbow Chicken Limited. Mr. Louw has been a member of the Board since 1 December 2008. Mr. Peter Mageza - who will retire in accordance with the provisions of the Board Charter, as he will reach 70 years of age this year. Mr. Mageza has been a member of the Board since 1 September 2009. The Board has approved the following changes relating to existing Board members: Mr. Carel Vosloo, who was appointed as Mr. Durand's alternate on 16 November 2023, has been appointed as a non-executive director of the Company, and will serve as a member of the Remuneration & Nominations Committee. Dr. Penny Moumakwa, currently an independent non-executive director, has been appointed as the chairperson of the Remuneration & Nominations Committee. Mr. George Steyn, currently Lead independent director, has been appointed as the chairperson of the Board. He will step down as a member of the Audit Committee and will continue to serve as a member of the Risk Committee, and the Remuneration and Nominations Committee, where he will continue to chair Nomination matters. The Board wishes these members well in their new roles. The Board has approved the following new appointments: Mr. Richard Rushton has been appointed as an independent non- executive director of the Company and will serve as a member of the Risk Committee. Mr. Rushton has a BComm from the University of the Witwatersrand. He started his career at Adcock Ingram Limited and went on to hold a variety of senior positions at SABMiller in Africa, Asia and Latin America from 1997 to 2013. He joined the Distell Group as Group Chief Executive Officer in 2013 and retired from that position in 2023, following the acquisition of Distell by Heineken. He is an active non-executive director and investor in unlisted companies, and currently serves as the non-executive chairman on Rubicon (Pty) Ltd. Ms Lwanda Zingitwa has been appointed as a non-executive director of the Company. Ms Zingitwa currently serves as Remgro's Investor Relations and Investments Executive and provides strategic oversight on the boards of a number of Remgro's portfolio assets. She qualified as a chartered accountant in 2010, and she has trained and spent the bulk of her career in investment banking, specifically mergers and acquisitions as a senior transactor at Rand Merchant Bank. She subsequently joined Dr. Jabu Mabuza as his chief of staff and strategic advisor across various portfolios, before her move to Remgro. She currently serves on the boards of Siqalo Foods, where she also chairs the Social and Ethics committee, Enerweb, Capevin Spirits and Discovery Insure, where she is also a member of the Audit Committee. Announcement • Aug 21
RCL Foods Limited to Report Fiscal Year 2024 Results on Sep 02, 2024 RCL Foods Limited announced that they will report fiscal year 2024 results on Sep 02, 2024 Price Target Changed • Jul 15
Price target decreased by 23% to R7.50 Down from R9.71, the current price target is provided by 1 analyst. New target price is 28% below last closing price of R10.41. The company is forecast to post earnings per share of R1.38 for next year compared to R0.61 last year. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to R10.21, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Food industry in South Africa. Total returns to shareholders of 63% over the past three years. Announcement • Jun 24
RCL Foods Limited Provides Earnings Guidance for the Financial Year Ending June 2024 RCL Foods Limited provided earnings guidance for the financial year ending June 2024. For the period, Earnings per share from total operations for the current period is expected to be at least 125.0% higher than the reported EPS of 69.3 cents for the prior period, an increase of at least 86.6 cents per share. The difference between HEPS and EPS in the current period largely relates to the profit on disposal of the Vector segment and insurance proceeds in respect of the fire damage at its Komatipoort raw sugar warehouse which occurred during the 2022 financial year. Both of these items are excluded from the calculation of headline earnings. Price Target Changed • Mar 22
Price target decreased by 15% to R8.26 Down from R9.71, the current price target is an average from 2 analysts. New target price is 17% below last closing price of R9.90. Stock is down 15% over the past year. The company is forecast to post earnings per share of R1.38 for next year compared to R0.61 last year. Major Estimate Revision • Mar 13
Consensus EPS estimates increase by 85% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from R0.747 to R1.38. Revenue forecast steady at R39.2b. Net income forecast to grow 46% next year vs 13% growth forecast for Food industry in South Africa. Consensus price target up from R9.71 to R10.21. Share price was steady at R10.00 over the past week. New Risk • Mar 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South African stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 05
First half 2024 earnings released: EPS: R0.90 (vs R0.58 in 1H 2023) First half 2024 results: EPS: R0.90 (up from R0.58 in 1H 2023). Revenue: R20.1b (flat on 1H 2023). Net income: R800.8m (up 56% from 1H 2023). Profit margin: 4.0% (up from 2.5% in 1H 2023). Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Food industry in South Africa. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Feb 28
RCL Foods Limited to Report First Half, 2024 Results on Mar 04, 2024 RCL Foods Limited announced that they will report first half, 2024 results on Mar 04, 2024 Announcement • Nov 18
RCL Foods Limited Announces Board Changes RCL Foods Limited announced that Mr. Carel Vosloo has been appointed as an alternate director to Mr. Jannie Durand, with effect from 16 November 2023, in respect of both Mr. Durand's position as a director of the board and his position as a member of the Remuneration and Nominations Committee. Carel has a BAcc Honours degree from the University of Stellenbosch and a Master's degree, MComm (Tax) from the University of the Witwatersrand. He is a qualified Chartered Accountant (CA)(SA) and a CFA Charter holder member. Carel held various positions at Rand Merchant Bank from 2004 to 2022, including co-head Corporate Finance and co-head of the Investment Banking division, and was represented on the executive committee of Rand Merchant Bank from 2014 to 2022. Carel joined Remgro Limited in March 2022, where he acts as Investment Executive. Announcement • Nov 04
Paul Johannes Neethling to Step Down as Alternate Director of RCL Foods Limited, Effective from 14 November 2023 RCL Foods Limited announced that Mr. Paul Johannes Neethling has indicated his intention to step down as an alternate director, with effect from 14 November 2023. Reported Earnings • Oct 05
Full year 2023 earnings released: EPS: R0.61 (vs R1.07 in FY 2022) Full year 2023 results: EPS: R0.61 (down from R1.07 in FY 2022). Revenue: R37.8b (up 17% from FY 2022). Net income: R542.8m (down 43% from FY 2022). Profit margin: 1.4% (down from 3.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Food industry in South Africa. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to R9.00, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 10x in the Food industry in South Africa. Total returns to shareholders of 45% over the past three years. Announcement • Sep 06
RCL Foods Limited Not to Declare a Final Dividend for the Year Ended June 30, 2023 The board of directors of RCL Foods Limited resolved not to declare a final dividend for the year ended June 30, 2023 in order to preserve cash whilst the repositioning of the portfolio is in progress. Total dividend per share declared for the 2023 financial year: Nil (2022: 45.0 cents per share). Reported Earnings • Sep 04
Full year 2023 earnings released: EPS: R0.61 (vs R1.14 in FY 2022) Full year 2023 results: EPS: R0.61 (down from R1.14 in FY 2022). Revenue: R37.8b (up 8.2% from FY 2022). Net income: R539.9m (down 47% from FY 2022). Profit margin: 1.4% (down from 2.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Food industry in South Africa. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Aug 30
A.P. Møller Capital P/S acquired Vector Logistics (Pty) Ltd from RCL Foods Limited (JSE:RCL). A.P. Møller Capital P/S entered into a binding agreement to acquire Vector Logistics (Pty) Ltd from RCL Foods Limited (JSE:RCL) for ZAR 1.3 billion on March 29, 2023. The transaction is subject to RCL FOODS obtaining consent to the Disposal by lenders to RCL Foods , RCL Foods obtaining consent to the Disposal by certain customers of Vector, RCL Foods obtaining consent to the Disposal by shareholders of an investment in which Vector Logistics owns a minority shareholding, approval from the Competition Authorities in South Africa. Vector Logistics (Pty) Ltd recorded total assets of ZAR 381.2 million and profit after tax of ZAR 34.7 million as of January 1, 2023. The transaction is expected to close on July 3, 2023. RMB bank acted as financial advisor to RCL Foods Limited. Webber Wentzel acted as legal advisor to RCL Foods. Angela Simpson and Janine Howard of Baker & McKenzie South Africa acted as legal advisors to RCL Foods Limited. Kenneth Barry, Gary Felthun, Sibusiso Zungu, Marc Israel, Will Smith and Ewa Orpen of White & Case (London) LLP and White & Case LLP acted as legal advisor to A.P. Moller Capital.
A.P. Møller Capital P/S completed the acquisition of Vector Logistics (Pty) Ltd from RCL Foods Limited (JSE:RCL) on August 29, 2023. Announcement • Aug 24
RCL Foods Limited Revises Earnings Guidance for the Year Ended June 2023 RCL Foods Limited revised earnings guidance for the year ended June 2023. For the year, on 4 July 2023 company reported that its earnings per share (EPS) from total operations for the current period would be at least 34.2 cents (30%) lower when compared to the reported EPS from total operations of 114.0 cents for the comparative period. Shareholders are advised that RCL FOODS expects its EPS from total operations for the current period is expected to be between 65.0cents (-43.0%) and 73.0 cents (-36.0%) when compared to the reported EPS from total operations of 114.0 cents for the comparative period. New Risk • Jul 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South African stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Profit margins are more than 30% lower than last year (2.3% net profit margin). Announcement • Jul 04
RCL Foods Limited Provides Earnings Guidance for the Year Ended June 2023 RCL Foods Limited provided earnings guidance for the year ended June 2023. The company’s headline earnings per share ("HEPS") and earnings per share ("EPS") for the year ended June 2023 ("current period") are expected to be at least 30.0% lower when compared to the reported HEPS and EPS for the year ended June 2022 ("comparative period"). HEPS is expected to be at least 35.6 cents (30.0%) lower than the comparative period reported HEPS of 118.6 cents and EPS is expected to be at least 34.2 cents (30.0%) lower than the comparative period reported EPS of 114.0 cents. Price Target Changed • Mar 16
Price target decreased by 8.1% to R10.43 Down from R11.35, the current price target is an average from 2 analysts. New target price is 9.3% below last closing price of R11.50. Stock is down 9.1% over the past year. The company is forecast to post earnings per share of R0.66 for next year compared to R1.14 last year. Reported Earnings • Mar 07
First half 2023 earnings released: EPS: R0.58 (vs R0.74 in 1H 2022) First half 2023 results: EPS: R0.58 (down from R0.74 in 1H 2022). Revenue: R20.2b (up 18% from 1H 2022). Net income: R512.2m (down 22% from 1H 2022). Profit margin: 2.5% (down from 3.8% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Food industry in South Africa. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 03
RCL Foods Limited to Report First Half, 2023 Results on Mar 06, 2023 RCL Foods Limited announced that they will report first half, 2023 results on Mar 06, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 7 non-independent directors. Independent Non-Executive Director Tlhabi, Penny Moumakwa was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 02
Price target increased to R11.35 Up from R10.43, the current price target is an average from 2 analysts. New target price is 6.1% above last closing price of R10.70. Stock is down 16% over the past year. The company is forecast to post earnings per share of R1.17 for next year compared to R1.14 last year. Upcoming Dividend • Oct 12
Upcoming dividend of R0.30 per share Eligible shareholders must have bought the stock before 19 October 2022. Payment date: 24 October 2022. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of South African dividend payers (8.9%). Lower than average of industry peers (5.4%). Price Target Changed • Sep 30
Price target increased to R11.73 Up from R10.43, the current price target is an average from 2 analysts. New target price is 6.0% above last closing price of R11.06. Stock is down 1.3% over the past year. The company posted earnings per share of R1.14 last year. Reported Earnings • Sep 07
Full year 2022 earnings released: EPS: R1.14 (vs R1.12 in FY 2021) Full year 2022 results: EPS: R1.14 (up from R1.12 in FY 2021). Revenue: R34.9b (up 10% from FY 2021). Net income: R1.01b (up 2.1% from FY 2021). Profit margin: 2.9% (down from 3.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.7% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Food industry in South Africa. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 10
Price target decreased to R9.88 Down from R10.68, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of R10.30. Stock is up 14% over the past year. The company is forecast to post earnings per share of R1.21 for next year compared to R1.12 last year. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. Non-Executive Director Kees Kruythoff was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Apr 13
Upcoming dividend of R0.15 per share Eligible shareholders must have bought the stock before 20 April 2022. Payment date: 25 April 2022. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of South African dividend payers (7.4%). Lower than average of industry peers (5.6%). Buying Opportunity • Mar 31
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be R14.72, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.7% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 11% in 2 years. Earnings is forecast to grow by 13% in the next 2 years. Major Estimate Revision • Mar 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from R1.35 to R1.21 per share. Revenue forecast steady at R33.8b. Net income forecast to shrink 1.4% next year vs 20% growth forecast for Food industry in South Africa . Consensus price target down from R10.68 to R10.43. Share price fell 5.7% to R13.44 over the past week. Reported Earnings • Mar 02
First half 2022 earnings: EPS and revenues exceed analyst expectations First half 2022 results: EPS: R0.74 (up from R0.62 in 1H 2021). Revenue: R17.1b (up 9.2% from 1H 2021). Net income: R655.1m (up 20% from 1H 2021). Profit margin: 3.8% (up from 3.5% in 1H 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.9%. Earnings per share (EPS) also surpassed analyst estimates by 7.7%. Over the next year, revenue is forecast to grow 4.8%, compared to a 5.3% growth forecast for the industry in South Africa. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Feb 28
RCL Foods Limited Declares Interim Cash Dividend for the Six Months Ended December 2021, Payable on 25 April 2022 The directors of RCL Foods Limited have declared an interim gross cash dividend (number 94) of 15.0 cents (12.0 cents net of dividend withholding tax) for the six months ended December 2021. A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt. Shares commence trading "ex" dividend is 20 April 2022. Record date is 22 April 2022. Payment date is 25 April 2022. Announcement • Feb 26
RCL Foods Limited Announces Change of Company Secretary RCL Foods Limited announced that Mr. John Maher will retire, and consequently resign as Company Secretary of the company, with effect from the close of business on 28 February 2022. The RCL board of directors announced that Ms Lauren Kelso has been appointed as Company Secretary of the company with effect from 1 March 2022. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 16% share price gain to R15.75, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Food industry in South Africa. Total returns to shareholders of 7.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R13.82 per share. Announcement • Feb 09
RCL Foods Limited Provides Earnings Guidance for the Six Months Ended December 31, 2021 RCL Foods Limited provided earnings guidance for the six months ended December 31, 2021. The company expects its headline earnings per share ("HEPS") for the six month period ended December 2021 ("current period") to be between 69.0 cents (+15.6%) and 76.0 cents (+27.3%) when compared to the reported HEPS of 59.7 cents for the six month period ended December 2020 ("comparative period"). Earnings per share ("EPS") for the current period is expected to be between 70.0 cents (+13.6%) and 77.0 cents (+25.0%) when compared to the reported EPS of 61.6 cents for the comparative period. Board Change • Feb 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. Non-Executive Director Kees Kruythoff was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Dec 01
CEO, MD & Executive Director Miles Dally has left the company During their tenure, earnings grew by 20% annually compared to the industry average, which went down by 0.08%. As of September 2021, Miles still personally held 3.19m shares (R34m worth at the time). Miles is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 10.83 years. Upcoming Dividend • Oct 20
Upcoming dividend of R0.30 per share Eligible shareholders must have bought the stock before 27 October 2021. Payment date: 02 November 2021. Trailing yield: 3.6%. Lower than top quartile of South African dividend payers (8.1%). Lower than average of industry peers (4.1%). Valuation Update With 7 Day Price Move • Oct 07
Investor sentiment improved over the past week After last week's 19% share price gain to R12.76, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Food industry in South Africa. Total loss to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R13.95 per share. Price Target Changed • Sep 24
Price target increased to R10.68 Up from R9.78, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of R11.15. Stock is up 86% over the past year. Price Target Changed • Sep 14
Price target increased to R9.78 Up from R8.70, the current price target is an average from 2 analysts. New target price is 7.1% below last closing price of R10.52. Stock is up 40% over the past year. Reported Earnings • Sep 07
Full year 2021 earnings released: EPS R1.12 (vs R1.03 loss in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: R31.7b (up 14% from FY 2020). Net income: R992.9m (up R1.89b from FY 2020). Profit margin: 3.1% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Apr 14
Upcoming dividend of R0.15 per share Eligible shareholders must have bought the stock before 21 April 2021. Payment date: 26 April 2021. Trailing yield: 2.7%. Lower than top quartile of South African dividend payers (7.7%). Lower than average of industry peers (3.8%). Reported Earnings • Mar 02
First half 2021 earnings released: EPS R0.62 (vs R0.63 in 1H 2020) The company reported a mediocre first half result with weaker profit margins, although earnings were flat and revenues improved. First half 2021 results: Revenue: R15.7b (up 11% from 1H 2020). Net income: R547.5m (flat on 1H 2020). Profit margin: 3.5% (down from 3.8% in 1H 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Feb 19
New 90-day high: R8.99 The company is up 12% from its price of R8.00 on 20 November 2020. The South African market is up 16% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Food industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 26
New 90-day high: R8.51 The company is up 15% from its price of R7.38 on 28 October 2020. The South African market is also up 15% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Food industry, which is flat over the same period. 
