RCL Foods posts 28.5% revenue growth in FY 2025 

SOUTH AFRICA – RCL Foods has reported a 28.5% increase in full-year earnings, supported by a robust turnaround in its baking business and stronger performance in groceries. 

The South African food producer, which owns brands such as Selati sugar, Yum Yum peanut butter, and Sunbake bread, said headline earnings per share (HEPS) from continuing operations rose to 156.3 cents for the year ended June. 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11.4% to R2.6 billion (US$148 million), boosted by cost-saving initiatives. On an underlying basis, excluding one-off items and accounting adjustments, EBITDA from continuing operations increased by 7.9% year-on-year to R2.39 billion. 

Group revenue edged 1.8% higher to R26.5 billion (US$1.5B), driven mainly by gains in groceries and baking. Groceries revenue was up 1.8%, supported by a favourable product mix in pet food and greater emphasis on premium brands. 

Attributable profit for the year came in at R1.6 billion (US$90.3M), slightly down from R1.62 billion (US$91.4M) in the previous year. 

Revenue from the baking division also rose 1.8%, with bread, buns, and rolls delivering a notable improvement in EBITDA alongside modest volume growth of 1.3%. 

The sugar segment, however, faced headwinds in the second half of the year, impacted by weaker consumer demand and a surge in sugar imports into South Africa.  

Despite these challenges, the segment achieved solid agricultural and manufacturing results, particularly at the Molatek unit, which benefited from a favourable sales mix and improved efficiencies. 

EBITDA in the sugar business declined 22% year-on-year to R1.09 billion (US$61.5M). On an underlying basis, groceries EBITDA rose 19% to R592 million (US$33.4M), while baking advanced 55% to R799 million (US$45.1M). Sugar’s underlying EBITDA fell 24% to R963 million (US$54.3M). 

Chief Executive Officer Paul Cruickshank said the group continues to focus on organic growth through innovation and market opportunities, while remaining open to strategic acquisitions. 

He noted that consumer demand in South Africa is likely to stay subdued despite easing food inflation, while sugar markets remain under pressure due to limited tariff protection and softer global prices. 

RCL Foods will continue implementing efficiency initiatives to improve margins and competitiveness, while pursuing export growth. The company is also managing energy, water, and logistics risks and advancing its climate response with resilience planning and a Scope 3 emissions inventory to inform future targets. 

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