RCL Foods blames levies, powers cuts for drop in profits

JOHANNESBURG - RCL Foods has flagged a drop in profits due to a special levy by the South African Sugar Association.

The levy of over R200 million to date was raised on their sugar business unit.

In their trading statement, they say the South African sugar industry is in a state of uncertainty with business rescue proceedings at Tongaat Hullett Sugar and the Gledhow Sugar Company.

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This has led the remaining industry participants to bear additional costs.

RCL Foods also pins the loss on the significant impact of power cuts and unrecovered feed costs.

Shareholders are advised that earnings per share could be as low as 30 percent for the year ending on June 2023.

Their financial results will only be released in September.