Magpie owner RFG pleased with market share gains and better margins, even as volumes fall

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Pieter Hanekom,Food Production

Magpie owner RFG pleased with market share gains and better margins, even as volumes fall

Bull Brand owner RFG said on Wednesday grew its interim earnings more than a fifth and took market share from rivals, even as it experienced volume declines as South African consumers struggle.

While it only reported a just over 3% increase in revenue to about R4 billion in the six months to end March, price inflation stood at almost 7%. But RFG said it was able to pass on increasing raw material and packaging costs, while implementing cost savings. At the same time, its load shedding-related diesel costs nearly halved to about R20 million, helping the owner of brands such as Hinds spices, Rhodes, Bisto and Today pastry, deliver a 15% increase in group operating profit to almost R400 million. Its operating profit margin picked up a full percentage point to just over 10%. Headline earnings rose 20.7% to R262 million.South Africans need to be in the know if we want to create a prosperous future.

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