Rhodes to declare first dividend in September

RHODES Food Group said yesterday its business continued to generate strong operating cash flows and the board planned to declare the first dividend in September.

Rhodes, which listed on the JSE in October last year, reported diluted headline earnings per share of 25.7c for the six months ended March, from 20.7c in the year-earlier period.

The group increased turnover by 12.4% to R1.3-billion, while profit after tax lifted 52.6% to R58.1-million.

Capital expenditure showed a significant increase to R90million from R23-million last year.

It was invested mainly in fruit production facilities in Tulbagh and Swaziland, upgrading the meat production plant, expanding pie-production capacity and installing and upgrading generators at several facilities to minimise the effect of load-shedding.

Rhodes produces convenience foods for distribution in southern African and global markets.

The group’s product range includes canned fruit, jam, vegetable and meat products, fresh ready-made meals, pies, pastries and dairy products.

Some of the group’s brands are Magpie, Bull Brand, Hazeldene, Portobello and Trout Hall.

Looking ahead, the company said it would aim to expand into new product categories that would be complementary to its current product ranges.

“The pipeline of potential acquisitions is encouraging and management will continue to seek opportunities to acquire food producers that are aligned to the group’s core products, or that provide entry into new product categories.

“The group will continue to drive organic growth and grow market share in both the fresh foods and long-life segments, while increasing sales in sub-Saharan Africa and ensuring a strong performance from the international division in the second half,” the company said. – BDlive