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Johannesburg - Poultry producer Rainbow Chicken on Tuesday reported a 39.6% decline in headline earnings to R318.8m for the year ended March.
However, the group said that excluding the unrealised losses on
financial instruments used in the feed raw material procurement strategy,
which amounted to some R153m, the decline moderates to 14.8%.
Diluted headline earnings per share for the year declined from 180.8c to 109.6c.
Revenue for the 12 months was up 14.4%, however, to R6.8bn.
The group declared a final dividend of 44 cents, bringing the total
dividend for the year to 68 cents, which was the same as last year.
Looking ahead, Rainbow said that considering the global economic
recession and its spill-over impact locally, consumer spending is expected
to remain under pressure.
"Maize prices are likely to remain volatile but at lower levels and
continue to trade around export parity. Soya prices are likely to remain
under pressure due to lower anticipated crops, the threat of further strikes
in Argentina and the continued exchange rate volatility.
"By virtue of Rainbow's forward procurement policy, feed prices are
only expected to be meaningfully lower in the second six months of the 2010
financial year," the group stated.
"The lower anticipated feed prices and benefit of the unrealised
procurement losses booked in 2009 are likely to have a favourable impact on
earnings for the 2010 year," it added.
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