DURBAN – Rhodes Food Group (RFG) fell more than 6 percent in early trade on the JSE yesterday despite the group releasing a favourable trading update for the 10 months to end July, with group turnover almost achieving a double-digit growth.
The group reported that its turnover increased 9.6 percent but weak macroeconomic and consumer environment in South Africa and the rest of Africa saw the regional segment turnover rising 8.8 percent while the international segment turnover surged by 13.4 percent during the period.
The group attributed the increases to higher volumes, a favourable shift in mix towards higher value-add products and the 9.7 percent depreciation of the rand against RFG’s major trading currencies.
“Turnover growth was supported by good increases in the export of fruit snacks in plastic cups to the US and stronger canned fruit sales, with lower exports of industrial products such as purées and concentrates,” the group said.
The group added that the international operating margin strengthened as a result of the favourable product mix and the weaker rand.