Wrap Text
Group audited annual results for the year ended 28 September 2025 and cash dividend declaration
RFG Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2012/074392/06)
Share code: RFG
ISIN: ZAE000191979
("RFG" or "the Group")
GROUP AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 28 SEPTEMBER 2025 AND CASH DIVIDEND DECLARATION
Key features
- Group revenue +1.6% to R8.1 billion
- Regional revenue +4.1% to R6.6 billion
- Group operating profit margin -230 basis points to 8.3%
- Normalised Group operating profit margin* -120 bps to 9.6%
- Regional operating profit margin -170 basis points to 8.9%
- Normalised regional operating profit margin* -20 bps to 10.4%
- Headline earnings -9.7% to R521 million
- Total dividend per share -10.4% to 99.6 cps
- Net debt to equity ratio declined from 11.9% to 16.9%
* Normalised for impact of impairment loss in regional segment
Trading and financial performance
Group revenue increased by 1.6% to R8.1 billion. The regional segment increased revenue by 4.1% in an environment of constrained
consumer spending and continued weak sentiment.
Revenue in the international segment continued to be impacted by the global oversupply of deciduous fruit products, resulting in
weaker demand. This has been compounded by the uncertainty on trade tariffs affecting shipments to customers in the United States.
Revenue Increase/ Volume Price Mix Currency
(% change) (decrease)
Regional segment 4.1 3.9 0.4 (0.2) -
International segment (7.9) (6.8) 0.2 - (1.3)
Total Group 1.6 1.7 0.4 (0.2) (0.3)
Regional revenue accounted for 81% (2024: 80%) of the Group's revenue.
Fresh foods revenue increased by 7.4%, with price inflation of 5.5% and mix changes of 2.4%, while volumes declined by 0.5%.
Ready meals reported good revenue and volume growth, supported by a resilient contribution from the pie category.
Long life foods increased revenue by 2.1% as volumes slowed in the second half as the impact of the constrained consumer spending
became more evident in the final quarter of the financial year. After increasing by 14.5% in the six months to March 2025,
volumes declined by 1.9% in the second six months to end the year 6.6% higher. Long life foods also faced a particularly high sales
base for September following a strong performance in the same month of the prior year.
In line with the Group's strategy of focusing on its growth categories, dry foods and fruit juice continued to deliver strong volume
and revenue growth. The long life foods performance was negatively impacted by pressure on canned meat volumes due to high input costs,
and consumer pushback on higher prices.
In this environment, it was pleasing that the Group continued to record market and brand share gains in key product categories.
The Group's brands are the market leaders in canned meat (Bull Brand), canned tomato (Rhodes), frozen pies (Today and Mama's)
and puff pastry (Today). The Rhodes brand holds the number two positions in fruit juice, nectar, canned fruit, jam, canned vegetables
and infant meals, while Hinds is the number two brand in spices, herbs and peppers.
International revenue declined by 7.9% due to slower global demand arising from an oversupply of deciduous fruit products. After declining
by 11.7% for the first six months of the financial year, export volumes were down 3.7% in the second half, closing the year 6.8% lower.
The Group's gross profit of R2.0 billion was marginally lower than the prior year while the gross profit margin declined by
90 basis points ("bps") to 25.0%, largely due to the impact of adverse market conditions on the gross profit margin of
the international segment.
Owing to the underperformance of the meat products operation due to slower demand and lower margins, an impairment loss of R104 million
was recognised against this business unit. This resulted in the regional operating profit margin declining to 8.9% from
10.6% in the prior year.
Excluding the impairment loss, regional operating profit increased by 2.4% to R691 million and the operating margin declined marginally
to 10.4% (2024: 10.6%).
The international operating profit was R102 million lower at R87 million, with the operating profit margin reducing from 11.4% to 5.7%
due to lower revenue and pressure on the gross profit margin owing to weak market conditions and Rand strength.
The lower international operating profit contributed to the Group's normalised operating profit declining by 9.9% to R778 million,
with the margin 120 bps lower at 9.6%.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") were 12.7% lower at R1.0 billion and the EBITDA margin
contracted by 210 bps to 12.4%.
Profit for the year decreased by 21.3% to R445 million while earnings attributable to owners of the group reduced by 21.3% to R445 million.
Earnings per share reduced by 21.8% to 170.4 cents.
Headline earnings at R521 million were 9.7% lower than the prior year, with headline earnings per share ("HEPS") declining by 10.3% to 199.2 cents
and diluted HEPS down 9.9% to 197.0 cents.
A final dividend of 70.0 cents per share has been declared, bringing the total dividend for the year to 99.6 cents (2024: 111.1 cents),
based on a dividend cover ratio of 2.0 times HEPS.
Owing mainly to the weaker performance of the international segment and the impairment loss in the regional segment, the Group did not achieve
its medium-term targets.
Proposed acquisition by Premier Group Limited
On 16 October 2025, shareholders were advised that RFG had entered into a transaction implementation agreement with Premier Group Limited ("Premier")
in terms of which Premier will acquire all the issued shares in RFG in a share swap transaction. The proposed transaction is subject to approval
by RFG shareholders in a general meeting. A combined offer circular containing details of the offer will be issued to RFG shareholders on
13 November 2025 and a general meeting will be convened for 11 December 2025. The transaction is also subject to approval from regulatory and
competition authorities. On the completion of the acquisition by Premier, RFG will delist from the JSE Limited.
Outlook
While consumers remain under pressure, South Africa's improving macroeconomic outlook with lower interest rates, sustained low inflation and
expectations of improved economic growth should support modest growth in consumer spending and sentiment in the short to medium term.
Management will maintain its focus on achieving its operating profit margin target of 10% through active management of sales volumes,
gross profit margin and operating costs.
In the international segment, the oversupply of deciduous fruit products due to weaker global demand is expected to continue to place pressure on
volumes and prices. The post-drought pineapple production in Eswatini is improving, although the recovery is taking longer than anticipated and
continues to impact the performance of the international segment.
The impact of the increased tariffs on South African exports to the United States remains uncertain. The higher tariffs have reduced RFG's price
competitiveness and some existing customers are sourcing from producers in countries with a tariff advantage relative to South Africa.
In response to the risk to sales, the group is implementing contingency plans to increase exports into other existing geographies and to
pursue new market opportunities.
Any reference to future performance included in this announcement has not been reviewed or reported on by the Group's independent auditor.
Final cash dividend declaration
The board of directors has declared a gross dividend of 70.00 cents per share in respect of the year ended
28 September 2025 for holders of ordinary shares.
The dividend has been declared out of income reserves. A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt,
resulting in a net dividend to these shareholders of 56.00 cents per share.
Shareholders are advised of the following salient dates in respect of the dividend declaration:
Last day to trade to receive a dividend Tuesday, 20 January 2026
Shares commence trading "ex" the dividend Wednesday, 21 January 2026
Record date Friday, 23 January 2026
Dividend payment to shareholders Monday, 26 January 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 21 January 2026 and Friday, 23 January 2026, both days included.
The number of ordinary shares in issue at the date of declaration is 262 762 018.
Pieter Hanekom Tiaan Schoombie
Chief Executive Officer Chief Financial Officer
Groot Drakenstein
19 November 2025
This results announcement is the responsibility of the Group's directors and is a summary of the information contained in
RFG's audited annual consolidated financial statements for the year ended 28 September 2025 ("2025 AFS") and does not contain full or complete details.
Any investment decisions should be based on a consideration of the Group's full 2025 AFS as a whole which is available, together with Group's summary financial
statements, on the Group's website at: http://www.rfg.com/investors, and on the JSE's cloudlink at: https://senspdf.jse.co.za/documents/2025/jse/isse/RFG/FY2025.pdf
The 2025 AFS have been audited by Ernst & Young Inc. who expressed an unmodified opinion thereon. A copy of the auditor's report,
together with the accompanying 2025 AFS, are available on the RFG website.
Directors
Independent non-executive
Dr YG Muthien (Chairperson)
T Blok (appointed 9 December 2024)
S Maitisa
SV Naidoo
BN Njobe
Non-executive
ZR Angamia (appointed 9 December 2024)
GJH Willis
Executive
WP Hanekom (Chief Executive Officer)
CC Schoombie (Chief Financial Officer)
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19-11-2025 07:05:00
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