Rainbow's earnings, profit slow

Johannesburg - Chicken producer Rainbow Chicken [JSE:RBW] announced on Tuesday that its diluted headline earnings per share for the six months ended September 2010 slowed to 55 cents from 58 cents a year ago.

Headline earnings per share were reduced to 55.2c from 58.2 cents previously.

The firm maintained its interim dividend at 28 cents per share, unchanged from the corresponding period last year.

Revenue increased to R3.384bn from R3.360bn a year earlier.
 
The company said chicken prices have continued to be under significant pressure due to the recession, additional local capacity and the higher level of imports.

As a result, the local chicken market is estimated to have declined by 5% in the past twelve months to R19.6bn with a 7% realisation decline partially being offset by a 1.5% volume growth.