RFG Delivers Resilient Regional Revenue And Profit Performance

Groot Drakenstein – RFG Holdings delivered a resilient regional performance for the year to September 2025, with regional revenue increasing 4.1% despite constrained consumer spending and weak sentiment. The regional operating profit margin exceeded the 10% target.

Group revenue increased by 1.6% to R8.1 billion, tempered by the international segment which continued to be impacted by weak global demand for deciduous fruit products and uncertainty over US trade tariffs.

The Western-Cape based food producer, which owns market-leading brands Rhodes, Bull Brand, Magpie, Squish, Hinds and Today, increased normalised regional operating profit by 2.4% to R691 million and the normalised operating margin declined marginally from 10.6% to 10.4%.

Lower international operating profit contributed to the group’s normalised operating profit declining by 9.9% to R778 million. Headline earnings at R521 million were 9.7% lower, with diluted headline earnings per share declining by 9.9% to 197 cents.

A total dividend of 99.6 cents was declared, 10.4% lower than the prior year.

CEO Pieter Hanekom said that in line with the group’s strategy of focusing on its growth categories, fruit juice and dry foods continued to deliver strong volume and revenue growth. Ready meals also reported good revenue and volume increases, supported by a resilient performance from the pie category.

Regional revenue accounted for 81% of total revenue. Within the regional segment, fresh foods increased revenue by 7.4% and long life foods by 2.1%. Growth was supported by a major focus on product and packaging innovation, said Hanekom.

The long life foods performance was negatively impacted by pressure on canned meat volumes due to high input costs and consumer pushback on higher prices.

Hanekom said it was pleasing that RFG continued to record market and brand share gains in key product categories in the constrained trading environment. The group’s brands are the market leaders in canned meat (Bull Brand), canned tomato (Rhodes), frozen pies (Today and Mama’s) and puff pastry (Today). The Rhodes brand holds the number two positions in fruit juice, nectar, canned fruit, jam, canned vegetables and baby food, while Hinds is the number two brand in spices, herbs and peppers.

International revenue, comprising 19% of total group revenue, declined by 7.9% due to slower global demand arising from an oversupply of deciduous fruit products. After declining by 11.7% for the first six months of the financial year, export volumes were down 3.7% in the second half, closing the year 6.8% lower.

RFG entered into an agreement in October to be acquired by Premier Group through a share swap transaction in which shareholders will receive one Premier share for every seven RFG shares. On completion, RFG shareholders will hold 22.5% of the enlarged Premier Group.

Hanekom said the transaction presents a compelling strategic rationale for creating a stronger player in the food producer sector, while retaining the strengths that have underpinned RFG’s success.

The transaction is subject to RFG shareholder approval at a general meeting on 11 December 2025 as well as regulatory and competition approvals. The transaction is expected to close by end March 2026, after which RFG will delist from the JSE.

On the outlook for the new financial year, Hanekom said while consumers remain under pressure, the country’s improving macroeconomic outlook should support modest growth in consumer spending and sentiment in the short to medium term.

“In our international business, the oversupply of deciduous fruit products due to weaker global demand is expected to continue to place pressure on volumes and prices,” he said.

RFG has committed capital investment of R370 million for the upgrading and maintenance of its production facilities across South Africa and Eswatini for the 2026 financial year.

Ends
Issued by Tier 1 Investor Relations on behalf of RFG Holdings
For further information contact
Graeme Lillie
Tier 1 Investor Relations
082 468 1507