Contribution to headline earnings 30 June
R million
30 June
R million
Distell – entity contribution 735 538
IFRS 3 charge (11) (47)
RCL Foods 846 759
Siqalo Foods – entity contribution 401 405
IFRS 3 charge (65) (79)
1 906 1 576


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


Market cap at 30 June 2022 R37 715 million
Listed on the JSE Limited
Chief Executive Officer R M Rushton
Remgro nominated directors J J Durand, P R Louw (alternate)


CSI/Training spend R81 million
Number of employees 4 607
BBBEE status Level 3
Environmental aspect Scope 1 and 2 emissions of 168 820 tonnes CO2e
30 June 2022
R million %
Revenue 34 134 20.8
Operating profit 3 419 20.3
Headline earnings 2 315 36.8

Distell Group Holdings Limited (Distell)

Distell’s contribution to Remgro’s headline earnings for the year under review amounted to R735 million (2021: R538 million). Including an additional IFRS 3 charge accounted for at Remgro level, Distell contributed R724 million (2021: R491 million).

Distell’s reported headline earnings for its year ended 30 June 2022 increased by 36.8% to R2 315 million (2021: R1 692 million). Distell revenue increased by 20.8% to R34.1 billion on 17.6% higher volumes. Revenue excluding excise duty increased by 18.3%.

Domestic revenues increased by 24.4% and volumes by 18.7%. This was during a period with 47 more trading days compared to the comparable period in the prior year. All three categories grew revenues by double digits. The growth momentum continued in the premium cider and ready-to-drink segment led by Savanna, Hunter’s and Bernini. Various spirits brands grew impressively with stand-out performances recorded by key gin, vodka, liqueur and whisky brands. The resilient growth in the wine category was driven by Drostdy-Hof, J.C. Le Roux sparkling wine and 4th Street.

In African markets, outside South Africa, revenue increased by 14.4% on 16.3% higher sales volumes. Volumes in Botswana, Lesotho, Namibia and Eswatini (BLNE) countries recovered in the second six months of the financial year to grow by 11.9% for the financial year compared to a 1.4% volume decline in the first half of the year. Outside the BLNE countries, revenue grew by 16%, largely driven by Mozambique, Zambia, Tanzania and Nigeria. The African region contributed 64.9% to foreign revenue, with its contribution to group revenue comprising 16.3% in the current period.

Revenue in international markets outside Africa increased by 7.9% alongside volume growth of 9.4%, primarily driven by single malts and Amarula. This growth was achieved despite one of its largest revenue-contributing regions, Taiwan, experiencing Covid-19-related on-consumption channel closures for extended periods during the trading period. However, volumes recovered and continue on a positive trajectory. South African port disruptions also had an adverse effect on wine exports that affected performance in the period. Global travel retail delivered a resilient performance despite ongoing travel disruptions.


RCL Foods is a holding company with diversified interests that focuses on three divisions: Food (Groceries, Baking and Sugar), Rainbow (chicken, including Epol Animal Feed) and Vector Logistics.


Market cap at 30 June 2022 R9 162 million
Listed on the JSE Limited
Chief Executive Officer P D Cruickshank
Remgro nominated directors J J Durand, P R Louw, H J Carse, P J Neethling (alternate)


CSI/Training spend R64 million
Number of employees 20 793
BBBEE status Level 4
Environmental aspect Scope 1 and 2 emissions of 1 045 842 tonnes CO2e
30 June 2022
R million %
Revenue 34 907 10.2
Operating profit 1 606 8.7
Headline earnings 1 054 10.0

RCL Foods Limited (RCL Foods)

For the year ended 30 June 2022, RCL Foods’ headline earnings increased by 10.0% to R1 054 million (2021: R958 million). Remgro’s share of the headline earnings of RCL Foods amounted to R846 million (2021: R759 million) for the year under review.

RCL Foods’ revenue for the year ended 30 June 2022 increased by 10.2% to R34.9 billion (2021: R31.7 billion). The increase was attributable to all business units, with the highest increases coming from Vector Logistics and Rainbow.

RCL Foods Value-added Business’ (Groceries, Baking, Sugar) EBITDA declined from the prior year, with the business having encountered a number of challenges in the current financial year. The inclusion of an additional trading week in the prior year also contributed to the decline. Sugar reported its second highest profit ever and the Groceries operating unit delivered another resilient result, driven mainly by the Pet Food category. Revenue growth was underpinned by steady volumes and responsible price increases that largely managed to recover higher input costs. The tiered portfolio, which provides both premium and value brands in the same category, has proven essential in maintaining sales volumes as more consumers trade down in tough conditions.

The Groceries business unit’s underlying EBITDA declined 1.9% to R551.7 million (2021: R562.4 million), with a strong Groceries result being offset by service level challenges and margin pressure in Pies and Beverages.

Whilst the Baking business unit delivered revenue growth, margins came under pressure in the second half of the year, driven by elevated wheat and fuel costs.

Sugar produced another excellent EBITDA performance. Local demand remained stable, with the sugar industry limiting price inflation to Consumer Price Index (CPI) levels in line with the Sugar Industry Master Plan. The heavy rainfall and flooding in parts of KwaZulu-Natal resulted in an uptake in the industrial channel for RCL Sugar business as competitors struggled with crystal availability and experienced operational issues.

Good progress has been made in Rainbow’s (Rainbow and grainbased animal feed) turnaround strategy. Underlying EBITDA improved 214.0% to R348.6 million (2021: R111.0 million), driven by improvements in pricing, agricultural results and procurement gains which partially countered commodity cost increases.

Vector Logistics has continued its turnaround with a pleasing improvement in revenue and EBITDA performance in the current financial year, driven by the completion of the ICL network integration and a recovery in the food service industry, with volumes returning to almost pre-Covid-19 levels. This performance has been achieved despite the impacts of the civil unrest in KwaZulu-Natal and Gauteng in the first quarter, which impacted Vector directly in lost revenue due to store closures and the looting of our Cornubia depot in KwaZulu-Natal; the flooding in KwaZulu-Natal in the fourth quarter; foreign exchange impacts in Zambia and higher fuel costs.


Siqalo Foods manufactures spreads which it sells under market-leading trade marks.


Equity valuation at 30 June 2022 R6 345 million
Managing Director A Mahoney
Remgro nominated directors J J du Toit, L Zingitwa


CSI/Training spend R8.2 million
Number of employees 274
BBBEE status Level 3
Environmental aspect Scope 1 and 2 emissions of 41 280 tonnes CO2e
30 June 2022
R million %
Revenue 3 546 14.8
Operating profit 476 (4.4)
Headline earnings 401 (1.0)

Siqalo Foods Proprietary Limited (Siqalo Foods)

Siqalo Foods manufactures spreads, which are sold under market-leading trade marks such as Rama, Flora, Stork and Rondo within the Southern African customs union territories.

Siqalo Foods’ contribution to Remgro’s headline earnings for the year under review amounted to R401 million (2021: R405 million), excluding additional IFRS 3 amortisation of R65 million (2021: R79 million). During a challenging, turbulent year impacted by a surge in commodity prices, supply chain challenges, the war in Ukraine (resulting in two price increases taken during the year), Siqalo Foods managed to achieve volumes in line with the prior year. Profitability was negatively impacted by high commodity prices, the full impact of which the business was unable to pass to the consumer, resulting in a decrease of 5.5% in its operational EBITDA. Whilst its profitability was negatively impacted, the business, by leveraging its market leading brands, delivered results ahead of the category. On 30 June 2022, Siqalo Foods had a combined twelve-month moving average value market share of 71.8%. Notwithstanding subdued economic conditions and a negative global economic outlook, Siqalo Foods remains committed to retaining its market share and growing its brands, while recovering its profit margins.

Two contracts are in place with RCL Foods. Vector Logistics provides the distribution, sales and merchandising, while a management services contract governs certain services that RCL Foods Shared Services platform provides to Siqalo Foods on an arm’s length basis. The result is an innovative, alternative business model, leveraging the capabilities within the wider Remgro Group of companies.