Bull Brand and Pakco owner RFG anticipates a jump in its interim earnings, but says that cost inflation is still a challenge.
Next week, the food producer is due to release its results for the six months ended 3 April 2022. It expects an increase in earnings of between 30% and 35% more than the 2021 interims’ R119.4 million.
Its headline earnings per share are likely to grow between 59.1 cents and 61.4 cents.
RFG said the earnings growth was aided by strong sales in the regional and international operations. But it flagged the significant price increase for cans and raw materials like meat and fats oils, in addition to high international freight costs.
"The group has been unable to recover the full extent of these input cost increases which has adversely impacted the operating profit margin of the regional segment," RFG said in a trading statement on Wednesday.
The food producers added that its results will include a R43.3 million insurance settlement it received in March, for the loss of profits during the Covid-19 lockdown in 2020.