MBABANE – Rhodes Food Group (RFG) has committed a capital investment of E370 million for the upgrading and maintenance of its production facilities across South Africa and Eswatini during the 2026 financial year.
This comes as the Western Cape-based food producer posted a 1.6 per cent increase in group revenue to E8.1 billion, according to its audited annual results for the year ended September 28, 2025.
The latest numbers reflect a mixed year for the group, characterised by resilient regional performance against weak global demand for deciduous fruit products and continued uncertainty over United States trade tariffs.
RFG Holdings delivered a solid performance within the regional market, where revenue increased by 4.1 per cent, despite pressure on consumer spending and subdued market sentiment.
The regional operating profit margin surpassed the company’s long-standing 10 per cent target, reflecting the strength of its core categories.
Regional revenue accounted for 81 per cent of the group’s total income, driven by strong performances in fruit juice, dry foods and ready meals. Fresh foods revenue grew by 7.4 per cent, supported by robust demand and continued product innovation, while long life foods posted a 2.1 per cent increase.
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… global weakness pulls down group profit
MBABANE – While regional operations delivered steady growth, the group’s international segment remained under pressure.
International revenue declined by 7.9 per cent, primarily due to an oversupply of deciduous fruit products and softer demand across major markets.
Export volumes fell 6.8 per cent for the year, with some stabilisation in the second half after a steep 11.7 per cent decline during the first six months.
The weaker international performance contributed to a 9.9 per cent drop in normalised group operating profit, which fell to E778 million.
Headline earnings declined by 9.7 per cent to E521 million, while diluted headline earnings per share dipped by 9.9 per cent to 197 cents.
RFG declared a total dividend of 99.6 cents, down 10.4 per cent from the previous year.
Hanekom said the group’s 2026 capital investment plans – totalling R370 million – will focus on maintaining and upgrading production facilities across South Africa and Eswatini.
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Premier Group acquisition on track
MBABANE – In October, RFG announced a share-swap acquisition agreement with Premier Group.
Shareholders will receive one Premier share for every seven RFG shares, resulting in RFG investors holding 22.5 per cent of the enlarged Premier Group once the transaction is completed.
Hanekom described the deal as strategically compelling, saying it would create ‘a stronger, more competitive player in the food producer sector’, while preserving the core strengths that have guided RFG’s success.
The acquisition is subject to shareholder approval at a general meeting scheduled for December 11, 2025, along with regulatory and competition clearances.
The transaction is expected to be finalised by end-March 2026, after which, RFG will be delisted from the Johannesburg Stock Exchange (JSE).
Kobus Gertenbach, Chief Executive Officer of Premier, said the transaction presents an opportunity for both RFG and Premier shareholders to participate in the growth of the enlarged group which would generate annual revenue of almost R28 billion and profit after tax of R1.7 billion.
The transaction will also enhance Premier’s free float on the JSE, boosting liquidity in the Premier share.
Gertenbach commented that “RFG is a highly attractive acquisition opportunity for Premier, with its market-leading position in convenience meal solutions, strong market share positions across key product categories and its portfolio of well-established brands.”
RFG’s diversified and well-balanced portfolio is a complementary addition to Premier’s product offering.
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