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RCL expecting losses for 2014 FY

RCL expecting losses for 2014 FY

Photo by Duane Daws

5th August 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JSE-listed RCL Foods on Tuesday said it expected to report a loss a share and a headline loss a share from continuing operations for the year ended June 30 of between 50c and 60c, as opposed to earnings per share (EPS) and headline earnings per share (HEPS) of 4.5c and 4.8c respectively during the prior year. 

The company indicated that the decrease in EPS and HEPS was largely owing to the impact of corporate transactions, including the redemption of New Foodcorp Holdings’ Euro-dominated senior secured notes at a premium, which crystallised material foreign exchange losses.

Further, the restructuring of black economic-empowerment shareholdings resulted in material IFRS 2 charges.

Transaction costs associated with these transactions, as well as with the buy-out of the remaining 35.8% minority interest in Foodcorp, the acquisition of TSB Sugar South Africa and a R790.1-million pro rata minority rights offer, also contributed to the losses.

Meanwhile, since the acquisition, in January, TSB’s results had been compromised by the three-month off-crop season from January to March, high volumes of imports impacting sugar prices and a two-week industry strike, RCL noted.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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