($1 = 18.1624 rand)
(Reporting by Nqobile Dludla; Editing by Kim Coghill and Sherry
Jacob-Phillips)
(Adds details on results, dividend and background)
JOHANNESBURG, March 6 (Reuters) - South African food
producer RCL Foods on Monday dropped interim dividend
plans after its half-year earnings slumped 22.4% due to high
commodity and energy costs.
Consumer goods producers globally have lifted prices to cope
with surging costs for almost all raw materials, energy and
packaging after Russia's invasion of Ukraine compounded
pandemic-related supply chain logjams.
Though many consumers seem to accept the increased prices,
the hikes have only partially offset the costs, squeezing
companies' margins.
In addition, crippling rolling power cuts added direct costs
of 96 million rand ($5.29 million) during the period, the maker
of Selati sugar, Ouma Rusks and Rainbow Chickens food products
said.
RCL said its headline earnings per share (HEPS) for the
six-month period ended December fell to 56.4 cents, while
earnings before interest, tax, depreciation and amortization
(EBITDA) declined 8.9% to 1.2 billion rand. EBITDA margin
dropped 1.7 percentage point to 5.8%.
Still, revenue rose 17.6% to 20.2 billion rand, benefiting
from higher pricing across all business units, combined with
higher volumes in the sugar and chicken businesses.
Shareholders will not be provided an interim payout, RCL
said, adding that it needs to preserve cash while grappling with
rising costs and legally separating its chicken and Vector
Logistics businesses.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.