JOHANNESBURG - RCL Foods shares fell nearly 5 percent after the company warned that annual earnings are set to decline.
The food producer expects headline earnings per share to decline by between 30 and 35 percent.
The weaker performance was driven mainly by a sharp drop in profitability at its sugar business, where cheaper imports and lower export prices weighed on margins.
Its pet food division also came under pressure following production disruptions linked to food safety issues, resulting in lower sales volumes and higher stock write-offs.
RCL Foods says stronger performances from its Culinary and Baking businesses helped offset some of the impact.
The group is expected to release its full-year results on 31 August.