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    RCL   ZAE000179438

RCL FOODS LIMITED

(RCL)
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End-of-day quote Johannesburg Stock Exchange  -  2022-07-04
10.10 ZAR   -1.08%
03/08South Africa's Shoprite weathers unrest to pump up first-half profit
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03/08Shoprite forced to tap alternative suppliers for wheat, cooking oil
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02/28RCL FOODS : 2022 Interim Results Announcement (0.15mb)
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Shoprite forced to tap alternative suppliers for wheat, cooking oil

03/08/2022 | 01:51am EDT

* Shoprite reports 25.5% jump in H1 earnings

* Expects further food price increases in H2

* 34 shipping containers cancelled due to Black Sea disruptions

JOHANNESBURG, March 8 (Reuters) - Shoprite Holdings Ltd has been forced to source cooking oil, wheat and maize products from alternative countries as the war in Ukraine disrupts Black Sea supplies, the CEO of South Africa's largest grocery retailer said on Tuesday.

With Ukrainian ports closed and operators reluctant to trade Russian wheat in the face of Western financial sanctions, buyers are seeking alternatives, triggering a wave of demand for European Union and U.S. wheat, according to traders.

CEO Pieter Engelbrecht said the retailer had to cancel 34 containers mostly carrying edible oil, maize and wheat products that were going to sail through the Black sea, with 11 of them coming directly from the Ukraine.

"We've been able to source it from a different source but we must not underestimate what the long term impact of this (disruption) is going to be because Ukraine is the second biggest exporter in all three of those commodities," Engelbrecht told Reuters.

Russia and Ukraine account for about 29% of global wheat exports, 19% of corn exports and 80% of sunflower oil.

Shoprite is also augmenting alternative imports with local sourcing, but "I really don't know what we're going to do in the second part of the year," Engelbrecht said.

He said that those imported products represent a small percentage of the group's overall business.

Food shortages in South Africa are unlikely, with impact seen mostly on food prices, Engelbrecht said.

Shoprite, which reported a 25.5% rise in half-year headline earnings per share, said it expects selling price inflation to move higher during the second half of its financial year, which began in January, due to mounting inflation pressures.

Consumer goods companies worldwide are battling a surge in costs of commodities, energy, transport and labour. Russia's invasion of Ukraine is compounding inflation pressures.

In South Africa, food producers Tiger Brands and RCL Foods, which service all grocers in the country, have recently announced plans to take additional price increases to the market.

In the six months ended Jan. 2, Shoprite's South Africa supermarkets business had selling price inflation of 2.6%, with January price increases of 2.5% ($1 = 15.3865 rand) (Reporting by Nqobile Dludla. Editing by Jane Merriman)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CORN FUTURES (C) - CBR (FLOOR)/C1 -0.51% 777.25 End-of-day quote.31.02%
DOW JONES AFRICA TITANS 50 INDEX -0.90% 433.48 Real-time Quote.-18.81%
DOW JONES SOUTH AFRICA(ZAR) 0.49% 1861.21 Real-time Quote.-6.60%
LONDON BRENT OIL -3.33% 101.52 Delayed Quote.46.07%
RCL FOODS LIMITED -1.08% 10.1 End-of-day quote.-22.43%
S&P AFRICA 40 INDEX -1.16% 138.98 Real-time Quote.-19.71%
S&P GSCI CORN INDEX 0.21% 490.196 Real-time Quote.-0.17%
SHOPRITE HOLDINGS LIMITED -1.94% 199 End-of-day quote.-4.73%
TIGER BRANDS LIMITED 0.75% 144.1 End-of-day quote.-20.39%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 1.01% 62.375 Delayed Quote.-24.94%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 -1.70% 1157.5 End-of-day quote.50.18%
WTI -3.58% 97.868 Delayed Quote.46.49%
All news about RCL FOODS LIMITED
03/08South Africa's Shoprite weathers unrest to pump up first-half profit
RE
03/08Shoprite forced to tap alternative suppliers for wheat, cooking oil
RE
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Financials
Sales 2022 33 795 M 2 039 M 2 039 M
Net income 2022 1 070 M 64,6 M 64,6 M
Net Debt 2022 3 103 M 187 M 187 M
P/E ratio 2022 8,37x
Yield 2022 4,55%
Capitalization 8 914 M 538 M 538 M
EV / Sales 2022 0,36x
EV / Sales 2023 0,33x
Nbr of Employees -
Free-Float 18,0%
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Mean consensus SELL
Number of Analysts 2
Last Close Price 10,10 ZAR
Average target price 10,43 ZAR
Spread / Average Target 3,22%
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Managers and Directors
Paul D. Cruickshank Director, Chief Executive & Operating Officer
Robert Hilton Field Chief Financial Officer & Executive Director
Robert Field Chief Financial Officer
Jan Jonathan Durand Non-Executive Chairman
Trevor J. Harding Chief Information Officer
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