DURBAN – Rhodes Food Group’s (RFG) share price gained more than 7 percent yesterday after the producer of convenience meal solutions said it expected its annual earnings to rise by up to 45 percent.
The group attributed the increase to good revenue growth, expansion of gross profit and operating margins.
RFG expected its headline earnings to increase by between 35 and 45 percent for the year end to September, up from last year’s headline earnings of R159.1 million.
The group said earnings had benefited from an income tax rebate of R10m relating to capital projects during the year.
The owner of Bull Brand, Magpie, Ma Baker and Pakco said its turnover during the period had increased by 8.2 percent compared with last year while its regional segment delivered a resilient performance and grew turnover by 8.1 percent.