Rainbow, South Africa’s second largest poultry producer, has confirmed the poultry industry’s recovery from a disastrous 2023 with the announcement that it expects profits for the year to June to be more than 200% better than the previous year.
Widespread outbreaks of avian influenza (bird flu) cost poultry producers R9.5 billion in 2023, making it the worst year in the industry’s history.
Rainbow’s good news came in a stock exchange statement ahead of the release of financial year-end results later this month. Rainbow said earnings per share (EPS) were expected to be between 206% and 226% higher than the year to June 2024, and headline earnings per share (HEPS) would show an annual improvement of between 214% and 234%.
“The expected improvement in EPS and HEPS relative to the comparative period can be mainly attributed to higher sales volumes, continued improvements in agricultural and operational performance, lower commodity input costs coupled with a reduction in expenses related to energy loadshedding and Avian Influenza.
“In addition, due to Rainbow’s improved profitability and the recapitalisation of the Company prior to its unbundling, finance costs have reduced relative to the comparative period,” Rainbow said.
More details of Rainbow’s recovery and prospects will come in the results announcement on 28 August.
