Rhodes Food Group’s regional business, covering South Africa and sub-Saharan Africa, increased sales by 21.4% in the year to September 2017.
While trading conditions in these markets have remained challenging the group reported organic growth of 12.7% and gained market share in key product categories, said CEO Bruce Henderson.
Sales in the rest of Africa continue to show good growth.
Rhodes owns a growing portfolio of market leading brands including Rhodes, Bull Brand, Magpie, Squish, Bisto, Hinds, Pakco and Southern Coating.
Regional sales growth was boosted by the acquisitions of Durban-based food manufacturer Pakco and KwaZulu-Natal pie producer Ma Baker, which have been incorporated in the results for six months. The integration of both businesses has been successfully completed.
The group’s international business has been adversely affected by the stronger Rand, reduced demand for industrial pulp and puree products, foreign pricing pressure mainly in Asia, and increasing costs on canned fruit because of the drought in the Western Cape. These factors contributed to international sales declining by 18.1% over the previous year.
Group turnover increased by 10.8% for the year.