One of many South Africa’s best-known manufacturers, Rainbow Rooster, has been listed on the Johannesburg Inventory Change (JSE), and shares will probably be traded from July 1.
Itemizing on the JSE represents a significant step for Rainbow Rooster because it turns into a stand-alone firm, unbundled from the former father or mother firm, RCL Meals.
Following cautious evaluation, the board of South Africa’s shopper items big RCL Meals Ltd introduced its determination to spin off its vertically built-in poultry division earlier this yr.
Since its basis as a household enterprise in 1960, Rainbow Rooster has grown to turn into one of many largest poultry corporations in South Africa, in response to the Johannesburg Inventory Change (JSE).
A completely vertically built-in poultry producers, the brand new Rainbow Group operates 165 farms, eight hatcheries, three major processing crops, and two additional processing factories. Moreover, it owns six feed mills — and the feed manufacturers Epol and Driehoek — and owns a 50% share in a three way partnership that operates two waste-to-value services beneath the title “Matzonox.”
To unbundle the poultry enterprise, greater than 890 million strange shares are on supply, on a one-to-one foundation for every share in RCL Meals. Shares will probably be buying and selling from July 1.
New period for Rainbow Rooster
For Rainbow’s CEO Marthinus Stander, changing into a stand-alone entity is a major milestone for the brand new firm, in response to JSE.
“We intention to re-establish and rebuild our rooster and feed companies as best-in-class by way of customer-centricity, delivering worth by way of innovation and leveraging our heritage,” he mentioned. “This daring transfer heralds a wave of thrilling alternatives for development in each our enterprise and our individuals. Our dedication to a easy transition ensures minimal disruption to our operations. We’ve strong plans to keep up stability and effectivity, persevering with our custom of excellence.
“We sit up for progressive developments in our product choices, enhanced group initiatives, and a stronger model presence.”
Becoming a member of Stander as govt administrators for the brand new firm are Kerry van der Merwe as chief monetary officer, and chief working officer Wouter De Moist.
Extra on Rainbow Rooster
As a part of RCL Meals, the Rainbow Rooster built-in poultry division achieved annual slaughterings of 197 million poultry. This output made it the second largest poultry firm, not solely in South Africa however on the African continent, in response to WATTPoultry.com’s Prime Poultry Corporations survey.
For the half-year to December 31, 2023, the Rainbow companies of RCL Meals achieved an working revenue of 112.2 million rand (ZAR; US$6.15 million) from a income of just below ZAR7.25 billion. With extremely difficult market situations, the companies solely achieved an working revenue in one of many earlier three monetary years, regardless of income development.
Nonetheless, with revised methods adopted over the previous three years, the brand new Rainbow Group stories that administration has efficiently improved the operational resilience of the entire enterprise.
