Listeriosis scare: Polony recall costs RCL Foods R75m | Fin24
 
  • Trump and Tariffs

    Face-to-face trade meetings with China on the horizon.

  • Peter Moyo

    What is next for Old Mutual and its on-and off-again CEO Peter Moyo as legal manoeuverings continue?

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Listeriosis scare: Polony recall costs RCL Foods R75m

Mar 26 2018 17:36
Jan Cronje

Cape Town - RCL Foods [JSE:RCL] announced on Monday that the recall of Rainbow polony products and the suspension of operations at its Wolwehoek processing plant have cost it R75m. 

This figure includes the costs of recalls and returns from customers, distribution and handling, destruction and dumping, testing, and media and communications.

"In addition, there is a financial impact associated with lost contribution on polony products being out of trade, as well as the unexpected impact on the balance of Rainbow’s chilled processed meats and other chicken categories," it said in a statement. 

"This indirect impact is difficult to determine or quantify at this stage, but management estimates the profit impact to be approximately R20m per month. Management is actively engaging government in order to resume operations at the Wolwehoek processing plant as soon as possible."

RCL Foods has said it removed the Rainbow polony products from stores as a precautionary measure. It previously stated that a French laboratory had cleared its Wolwehoek plant of the ST6 listeria strand. 

"Rainbow polony products can be returned to the store where the product was purchased for a full refund," said RCL Foods in a previous media update. "The recall concerns only Rainbow polony. All other Rainbow Chicken products produced at our other plants are not subject to this recall."

RCL's share price closed unchanged at R19.00 on the JSE.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

rcl foods  |  listeriosis  |  listeriosis outbreak
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...