RCL Foods reported lower annual earnings as cheaper sugar imports and disruption from a pet-food recall weighed on its continuing operations.
RCL Foods reported weaker annual earnings for the year to June 2026, with pressure from cheaper sugar imports and disruption in its pet-food business offsetting growth elsewhere in the group.
The Durban-based food producer said underlying earnings before interest, tax, depreciation and amortisation from continuing operations fell 8.6% to R2.18 billion. Underlying headline earnings declined 27.1%.
The biggest strain came from the sugar division, where higher volumes of lower-priced deep-sea imports reduced local margins. South African sugar producers have repeatedly raised concern about import competition while the industry awaits decisions on tariff protection.
RCL Foods also recorded costs and lost production linked to a Salmonella-related pet-food recall. The company said supply interruptions affected the business during the reporting period.
The results cover operations that include Rainbow Chicken, groceries, baking, sugar and animal feed. RCL Foods has been reshaping the group after separating its Vector Logistics business and returning Rainbow to the JSE as a separately listed company.
Management said the group remained focused on improving operating efficiency and protecting margins in a difficult consumer environment. South African households have continued to face pressure from food, electricity and transport costs, limiting how quickly producers can pass higher input costs on to shoppers.
The company published its audited annual results and supporting fact sheet on Monday. The figures in this report refer to continuing operations and exclude businesses that have been separated from the group.
