RFG Holdings (RFG) H1 2025 earnings summary

Executive summary

• Group revenue increased 3.5% to R4.0 billion, led by a 9.9% volume recovery in the regional segment, while international revenue declined 17.2% due to lower global demand, oversupply, shipping delays, and drought-impacted pineapple supply.

• Group profitability declined, with operating profit down 13.9% to R343 million and margin falling 170 bps to 8.5%, mainly due to international segment weakness.

• Interim dividend of 29.6 cents per share declared, reflecting a new policy of both interim and final dividends and board confidence in cash generation.

• Strategic focus remains on growing the regional business faster than international to reduce cyclicality.

Financial highlights

• Regional revenue increased 7.6% to R3.5 billion, with volume growth of 9.9%; international revenue fell 17.2% to R500 million.

• Group operating profit fell 13.9% to R343 million; margin dropped 170 bps to 8.5%.

• EBITDA decreased 8.8% to R503 million; headline earnings declined 11.9% to R231 million; HEPS down 11.9% to 88.7 cents.

• Free cash flow improved to R61 million from an outflow of R199 million.

• Net debt reduced by 29.8% to R821 million; net debt to equity improved to 22.0%.

Outlook and guidance

• Regional segment expected to maintain trading momentum in H2, with focus on product innovation, brand share growth, and margin management to achieve a 10% operating margin target.

• International segment faces continued pressure from slow global demand, high stock levels, and US trade tariffs; pineapple crop recovery expected to take 12–18 months.

• Management engaging with US customers on post-tariff terms and exploring alternative export markets.