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In a fairly quiet start to the week, food producer RFG warned it's still feeling volume pressure, though it's not all bad news. On the international front, the bad news for aircraft manufacturer Boeing continues after a "technical event" injured dozens during a flight to New Zealand.
Food group RFG, the owner of brands such as Rhodes, Bull Brand, Magpie, Squish, and Bisto, said in an update on Monday that revenue picked up by just over 5% in the five months to end-February, describing this as resilient given a weak domestic consumer environment. Total group volumes, however, fell just over 5% as well amid price inflation of 7.9%. There were bright spots, and in fresh foods, the pie category continued its recent volume growth momentum, with the ready meals category benefiting from the resilience of higher-income consumers. The group added that it is experiencing cost pressure from high tinned can and paper packaging costs, while load shedding-related diesel costs have moderated. Shares in RFG, valued at about R3.5 billion, fell about 5% but have still gained almost a fifth in the past year.
Mauritius-based investment holding company EPE Capital Partners reported on Monday that its net asset value per share fell almost 15% in its six months to end-December. Portfolio companies demonstrated significant growth in profitability with attributable core increasing by 26% over the period; however, the decrease in the value of its listed investments, Brait and MTN Zakhele Futhi, resulted in a decrease in the company's NAV. The group has unlisted portfolio investments including fintech firms Optasia and Crossfine, and a stake in TymeBank, and, at fair value, its 22 investments are worth about R2.4 billion. The unlisted portfolio NAV decline of 3% was driven by difficult operating conditions and currency devaluation, it said. EPE fell almost 2% and has fallen about 20% in the past 12 months.
