• Profile

    Unilever manufactures and markets an extensive range of food and home and personal care products, while enjoying market leadership in most of its major categories. Well-known brands include Robertsons, Rama, Flora, Lipton, Joko, Sunlight, Omo, Surf, Vaseline and Lux.

    Unilever South Africa Holdings PROPRIETARY Limited (Unilever)

    Unilever has a 31 December year-end, but its results for the 12 months to 30 June 2016 have been equity accounted in Remgro’s results for the year under review. Unilever’s contribution to Remgro’s headline earnings for the year under review increased to R461 million (2015: R331 million).

    Unilever’s restructuring costs for the 12 months under review amounted to R83 million (2015: R288 million) driven by investments for the Food Solutions factory resulting in streamlining of operations and improved efficiencies.

    Unilever’s net profit for the 12 months to 30 June 2016 increased to R1 780 million (2015: R1 246 million).


  • profile

    Distell produces and markets fine wines, spirits and flavoured alcoholic beverages in South Africa and internationally.

    Distell Group Limited (Distell)

    Distell has a June year-end and therefore its results for the 12 months ended 30 June 2016 have been included in Remgro’s results for the year under review. Distell’s contribution to Remgro’s headline earnings for the year under review, which includes Remgro’s indirect interest in Distell held through Capevin Holdings Limited, increased by 12% to R499 million (2015: R445 million).

    Distell reported for its year ended 30 June 2016 that turnover increased by 9.6% to R21 470 million (2015: R19 589 million). Sales volume in the South African market increased by 8.8%, while revenue increased by 12.1% despite a slowdown in real consumer spending growth. Sub-Saharan African markets, excluding South Africa, delivered mixed results as revenue declined by 3.2% on a sales volume decline of 14.3%, mainly due to the challenging macroeconomic conditions in Angola. The region contributed 46.7% to foreign revenue. Revenue derived from international markets beyond Africa increased by 13.1%, mainly due to the weaker rand and an improved sales mix. Volumes declined by 12.5% given the continuing tough trading conditions in many of the markets where Distell operates.

    Distell’s reported headline earnings for its year ended 30 June 2016 increased by 12.3% to R1 611 million (2015: R1 435 million) as a result of the growth in revenue and efficiency improvement across the business, as well as a weaker rand.


  • profile

    RCL Foods is a holding company with diversified interests that focus on three segments: Consumer (Chicken, Grocery, Pies, Beverages and Food Solutions), Sugar & Milling (Sugar, Animal Feed and Millbake business units) and Logistics.

    RCL FOODS Limited (RCL FOODS)

    For the year ended 30 June 2016, RCL Foods reported headline earnings from continuing operations amounting to R849.7 million (2015: R972.2 million). During the financial year, the results of RCL Foods were materially impacted by the following significant events:

    • An impairment loss of R642.8 million relating to the Milling operation in the Sugar and Milling division due to a competitive trading environment and an increase in the discount rate;
    • The release of a R163.3 million provision for uncertain tax disputes that were finalised with the South African Revenue Service;
    • Recognition of R67.7 million profit after tax (headline earnings impact of R118.9 million) following the exercise of put options relating to Zam Chick and Zamhatch; and
    • A loss of R80.6 million (2015: R106.2 million profit) due to the appreciating rand on long foreign exchange positions entered into in terms of the Groups’ raw material procurement strategy.

    Remgro’s share of the headline earnings of RCL Foods amounted to R658 million (2015: R755 million) for the year under review.

    The pervasive drought affected almost all aspects of RCL Foods’ businesses and had a significant impact on its results. The increase in commodity prices was exacerbated by the substantial deterioration in the rand since the beginning of the financial year, while food inflation impacted an already weak consumer environment. The negative impact by these factors were effectively limited by strategic initiatives that RCL Foods implemented over the past three years. These initiatives have also positioned the business for sustainable future growth.

    RCL Foods’ total revenue for the year under review increased by 6.8% to R25.0 billion (2015: R23.4 billion).

    The consumer division’s revenue increased by 10.1% to R13.3 billion (2015: R12.1 billion). The Chicken business unit’s operating profit before interest, taxation, depreciation and amortisation (EBITDA) declined by 62.0% to R158.1 million and negated the performance of Groceries (EBITDA increased by 19.9% to R543.6 million).

    Revenue from the Sugar and Milling division increased by 5.6% to R14.9 billion (2015: R14.1 billion), while EBITDA decreased by 20.7% to R830.1 million. The Sugar business was affected by the drought and the cane crop decreased by 1 175 352 tonnes, leading to 152 980 tonnes less sugar produced. Significant synergies resulted from merging Epol and Molatek into one Feed business by increasing the sales footprint and product offering, as well as by utilising Millbake by-products (such as bran). Operational challenges and a competitive trading environment resulted in EBITDA from Milling to decline to R272.3 million (2015: R303.8 million).

    Revenue from the Logistics Division increased by 5.5% to R1 987 million (2015: R1 884 million), while EBITDA increased to R260.7 million (2015: R206.2 million).