Half Year 2024 RFG Holdings Ltd Earnings Call Transcript
Key Points
- RFG Holdings Ltd (JSE:RFG) achieved a strong improvement in profitability despite volume pressures, with the operating profit margin increasing by 100 basis points to 10.2%.
- The company saw a reduction in debt levels, with the net debt equity ratio improving from 46.7% to 33.3%.
- Regional operating profit increased by 19.7% to ZAR327 million, with the operating profit margin improving by 110 basis points to 10%.
- RFG Holdings Ltd (JSE:RFG) achieved market share gains in key categories, including canned fruit, vegetables, and meat.
- The company has made significant investments in capital expenditure, particularly in the meat and Tulbagh fruit plant, which is expected to support future revenue and margin growth.
- The company experienced a decline in international revenue by 8.6%, impacted by challenges at the Cape Town port and softer global pricing.
- Volume growth was negative by 6.1%, indicating a weak domestic consumer spending environment.
- Load shedding costs, although reduced, still amounted to ZAR18.2 million, impacting overall profitability.
- RFG Holdings Ltd (JSE:RFG) faces ongoing shipping challenges, with export shipments adversely impacted by port congestion and inefficiencies.
- The company anticipates continued pressure on consumer demand due to cost pressures and commodity price increases, which may impact future volumes.
Hello. Welcome to everyone and thank you for joining us in presenting the 20th set of results since the listing in 2014. We are extremely proud of the achievement and blessed to present a good set of results. Big thank you to our Board and employees for their support in delivering these numbers.
Looking at the presentation outline, I will do the review of the six months, after which Tiaan will do the financial performance. I'll take over doing the trading performance, looking at sustainability, strategy, and outlook, after which we'll field questions. Please post your questions via the webcast during the presentation, after which Tiaan and myself will handle it at the end of the presentation.
So if you just look at the review of the six months, we've seen a strong improvement in profitability despite the volume pressures. The group operating profit margin exceeded our target (technical difficulty) level despite some pressure on sales volumes. Margin improved by 100 basis points to 10.2%. Improvement due to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
