Rainbow is South Africa’s second largest poultry producer. The pending separation was announced together with RCL’s financial results for the six months to end December 2023.
RCL said its board had given preliminary approval for the move, which would be achieved via an unbundling to shareholders and a concurrent listing on the JSE.
“The board is of the view that the unbundling of Rainbow will enable both businesses to pursue their respective growth ambitions and investment theses in a focused manner and with improved alignment on capital allocation priorities,” the company said.
Rainbow’s revenue increased by 10.8% and underlying earnings (EBITDA) by 364.8% from the corresponding period in 2022.
While this was due to “a better agricultural performance, improved volumes and margins and sound cost control,” performance was nevertheless compromised by load shedding and the impact of avian influenza (bird flu).
