The group’s results for the year ending 28 September 2014 also saw its profit after tax more than double from 44.3 million rand to 82.5 million rand.
(READ MORE: Rhodes Food lists on the JSE)
[DATA RFG:Rhodes Food Group Holdings Limited]’s headline earnings for the period were also increased from 45.6 million in 2013 to R81.3 million rand in 2014.
The group’s normalised headline earnings per share increased by 40.5 per cent to 36.8 cents, this is assuming the number of shares in issue post listing applied in both 2013 and 2014 and adjusting for 22.2 million rand after taxation transaction costs in the prior period.
The company saw its normalised diluted HEPS on the same basis surging by 40.1 per cent to 35.3 cents.
Rhodes’s turnover was also up 31.5 per cent to 2.4 billion rand up from 1.8 billion rand in the same comparable period in 2013.
The group said the growth trend was informed by continued organic growth and the inclusion of the Bull Brand business for the full year.
The leading producer of convenience meal solutions in fresh, frozen and long life product formats saw its operating margin increasing from 8.6 per cent to 9.7 per cent.
“The operating margin improved by 110 basis points from 8.6 per cent to 9.7 per cent. The higher margin, together with the growth in turnover, contributed to a 47.9 per cent or 76.4 million rand increase in operating profit to 236.1 million rand,” the company said in a statement.
The operating margin on a normalised basis, excluding transaction costs and other sundry
revenue, remained at 9.6 per cent for the year.
The group’s growing portfolio of strong brands includes Rhodes, Bull Brand, Magpie, Hazeldene and Portobello.
Rhodes is upbeat about the future and says it will continue to capitalise on the strength of its brands and long-term customer relationships to drive organic growth and grow market share in both the Fresh Foods and Long Life segments.
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The group added that this growth will be supported by further expansion into Sub-Saharan Africa.
“Bull Brand is expected to increase its revenue and profit contribution as the benefits of integration into the group’s operations and the upgrading of facilities become evident,” said the company.
“Management plans to complement the organic growth strategy by pursuing selective acquisition opportunities of other food producers that are aligned to the group’s core products.”
The group says it will maintain its hedging policy to limit the impact of currency fluctuations on earnings.