JSE-listed Rhodes Food expects to report a drop in headline earnings of between 17% and 22% for the year ended October 1, from the restated headline earnings of R293.1-million in 2016.
While its regional markets showed good organic growth, the international business significantly dragged the group’s profitability for the year under review.
However, in a trading update on Monday, the company said an increase of 10.8% year-on-year in turnover was anticipated for the year ended October 1.
While trading conditions domestically and in other African markets have remained challenging, Rhodes continued to show good organic growth in its regional markets, with regional turnover increasing by 21.4%, with organic growth of 12.7%.
The acquisitions of Pakco and Ma Baker bolstered the company’s regional performance during the last six months of the year under review.
A stronger rand, reduced demand for industrial pulp and puree products, foreign pricing pressure mostly in Asia and increasing costs on canned fruit as a result of the drought in the Western Cape had adversely impacted on the group’s international business.
International turnover for the 12 months showed a decline of 18.1% year-on-year.
Rhodes planned to publish its results on November 21.