Contribution to headline earnings 30 June
R million 
30 June
R million
RCL Foods 759 92
Distell – entity contribution 538 165
IFRS 3 charge (47) (47)
Siqalo Foods – entity contribution 405 414
IFRS 3 charge (79) (79)
1 576 545


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

Corporate information

Market cap at 30 June 2021 R8 615 million
Listed on the JSE Limited
Chief Executive Officer R M Dally
Remgro nominated directors J J Durand, P R Louw, H J Carse, P J Neethling (alternate)

Sustainability measures

CSI/Training spend R33 million
Number of employees 20 547
BBBEE status Level 3
Environmental aspect Scope 1 and 2 emissions of 1 056 387 tonnes CO2e
Financial highlights Year ended 30 June 2021 
R million 
Revenue 31 688 14.0
Operating profit 1 477 283.3
Headline earnings 958 736.0

RCL Foods Limited (RCL Foods)

For the year ended 30 June 2021, RCL Foods’ headline earnings increased by 736.0% to R958 million (2020: R114 million). Remgro’s share of the headline earnings of RCL Foods amounted to R759 million (2020: R92 million) for the year under review.

RCL Foods’ revenue for the year ended June 2021 increased by 14.0% to R31.7 billion (2020: R27.8 billion). The increase was largely driven by increased Sugar revenue due to higher local market share, higher Vector Logistics revenue resulting from the take-on of new customers following the Imperial cold chain (ICL) acquisition (full year versus seven months in the prior year) and an improvement in Chicken following the negative impact of the Covid‑19 pandemic and lockdown on the last quarter of the 2020 financial year.

The Food Division delivered a strong result, with a record performance in Sugar, which benefited from higher demand, strong cost control and improved sales mix, as well as a significantly improved Baking result and pleasing growth in Groceries.

Baking delivered an excellent result across all operating units. Revenue of R5 849 million improved by 12.6% (2020: R5 195 million) driven by increased in-home consumption and a more favourable sales mix.

Sugar reported a record performance, with revenue climbing 10.2% to R8 398 million (2020: R7 622 million) and underlying EBITDA increasing 144.2% to R908 million at a margin of 10.8% (2020: R372 million at a margin of 4.9%).

Sugar’s record result was mainly driven by increased consumer demand amidst the ongoing Covid-19 lockdown, tight cost control combined with a successful shift in its sales mix towards higher-priced local market sales. Increased local sugar demand and a shrinking industry crop have created a more favourable supply-demand balance. A higher world sugar price has also impacted favourably on export revenue.

The Chicken Division’s performance was significantly weaker than the prior year. Despite revenue increasing by 17.3% to R10 336 million (2020: R8 814 million), underlying EBITDA decreased 50.1% to R99 million at a margin of 1.0% (2020: R198 million at a margin of 2.2%). Extra storage costs and supply chain relief measures materially impacted results by R112 million (2020: R170 million) – the largest portion of the direct Covid-19 costs adjusted out of the underlying group numbers.

Vector Logistics had a significantly better year, with revenue increasing 21.8% to R3 154 million (2020: R2 589 million) mainly as a result of ICL’s former principals being included on a full-year basis, compared to seven months in the prior period. Underlying EBITDA improved by 142.6% to R290 million at a margin of 9.2% (2020: R119 million at a margin of 4.6%) as the consolidation of the Vector Logistics and ICL networks reduced the cost base significantly.


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

Corporate information

Market cap at 30 June 2021 R36 744 million
Listed on the JSE Limited
Chief Executive Officer R M Rushton
Remgro nominated directors J J Durand, P R Louw (alternate)

Sustainability measures

CSI/Training spend R56 million
Number of employees 4 046
BBBEE status Level 3
Environmental aspect Scope 1 and 2 emissions of 134 371 tonnes CO2e
Financial highlights Year ended 30 June 2021 
R million 
Revenue 28 254 26.3
Operating profit 2 843 189.8
Headline earnings 1 692 227.3

Distell Group Holdings Limited (Distell)

Distell’s contribution to Remgro’s headline earnings for the year under review amounted to R538 million (2020: R165 million). Including an additional IFRS 3 charge accounted for at Remgro level, Distell contributed R491 million (2020: R118 million).

Distell’s reported headline earnings for its year ended 30 June 2021 increased by 227.3% to R1 692 million (2020: R517 million). Distell revenue increased by 26.3% to R28.3 billion on 26.3% higher volumes. Revenue excluding excise duty increased by 24.2%.

Domestic revenues increased by 29.4% and volumes by 28.7%. This was achieved despite losing 20% of the year’s trading days due to the second and third sale of alcohol bans introduced by the South African government. Distell’s diverse product portfolio, with well-known brands, recent innovations and strong route-to-market in South Africa contributed to market share gains across all three categories. Both ciders and ready-to-drink beverages (RTDs) and spirits surpassed pre-Covid-19 revenue levels. Distell’s digital Business-to-Business sales and e-commerce business showed excellent adoption rates and robust growth as customers and consumers adapted purchasing preferences. All three categories performed well as consumption preferences for trusted brands across categories played to Distell’s diverse portfolio strength. The group’s premium cider brand, Savanna, continued its momentum, with phenomenal revenue and market share growth that saw it pulling level with well-known premium beers. Key gin and vodka brands performed well in the spirits category. The wine category benefited from growth in mainstream wine, while accessible premium brands started to recover, driven by in-home consumption trends.

In African markets, outside South Africa, revenue increased by 22.9% on 30.7% higher sales volumes, well above pre-Covid-19 levels. Volumes in BLNE countries (Botswana, Lesotho, Namibia and Eswatini), also impacted by various lockdowns, grew by 22.2%. The Africa region contributed 63.6% to foreign revenue, with its contribution to Group revenue comprising 17.2% in the period.

Revenue in international markets outside Africa grew by 10.0% alongside an expected volume decline of 10.8% due to the cessation of sales of non-core wine brands, bulk whisky and the exit from the RTD business. Strong international premium spirits growth continued, led by single malts in all major markets. Scottish Leader grew strongly in Taiwan with market share gains. Amarula grew strongly in most key markets, with gains in Germany reaching a key milestone of one million litres in market sales as a result of innovation and a step-up in consumer marketing. The export portfolio put in a resilient performance despite the continued pressure on the global travel retail sector and out of stock positions as a result of supply chain disruptions due to the pandemic. Despite declines in wine volumes, margins have increased.


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

Corporate information

Market cap at 30 June 2021 R7 277 million
Managing Director A Mahoney
Remgro nominated directors J J du Toit, L Zingitwa

Sustainability measures

CSI/Training spend R5.8 million
Number of employees 274
Environmental aspect Scope 1 and 2 emissions of 22 734 tonnes CO2e
Financial highlights Year ended 30 June 2021 
R million 
Revenue 3 088 13.9
Operating profit 498 (3.3)
Headline earnings 405 (2.2)

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 R405 million (2020: R414 million), excluding additional IFRS 3 amortisation of R79 million (2020: R79 million). Siqalo Foods received an after tax finalisation amount of R31 million from Unilever in the prior year. Excluding the finalisation amount Siqalo Foods’ contribution to headline earnings increased from R383 million to R405 million (or 5.7%). During a challenging, turbulent year impacted by the Covid-19 pandemic as well as the weak South African rand impacting on imported raw materials (resulting in two price increases taken during the year), Siqalo Foods managed to grow volumes by 5.5% compared to the prior year. Good cost management enabled the business to increase its operational EBITDA by 6.7%. The business continues to deliver good results in line with prior years driven by its market leading brands. On 30 June 2021, Siqalo Foods had a combined 12-month moving average value market share of 72.3%. Siqalo Foods remains committed to keeping its market share and growing its brands in 2022 while maintaining its profit margins during the subdued economic conditions.

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 provide 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.