RCL Foods | Icing on the cake
RCL's FY '18 results were strong, with HEPS growth of 39% yoy to 95cps. Lower chicken feed costs and benefits from the chicken business restructuring began to filter through. The chicken business will be more stable through cycles because of lower exposure to volatile, mainstream products. The groceries performance was solid, with market share improvements which we believe will hold in future. Sugar profits remain under pressure, but higher tariffs will allow prices to rise and profits to recover. RCL Foods has been through four years of restructuring and the benefits are flowing from across their value chain. We believe it will prove difficult for peers to dismantle the progress RCL has made.RCL Foods is a holding company. Through its subsidiaries, Co. is engaged in producing and marketing chicken and its related products. Co. breeds and rears its own livestock which it feeds from its own feed mills, processes, distributes and markets fresh, frozen, value-added and further-processed chicken. Co. operates in the local retail, wholesale and foodservice channels under its own brands, including Rainbow FoodSolutions, Cobb and Epol. Co. consumer brands include Rainbow and Farmer Brown.
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