Rainbow Chicken, the JSE-listed poultry and consumer goods company unbundled from Remgro-backed RCL Foods and partly owned by Johann Rupert, saw its profit surge 134.8 percent in the 2026 financial year, driven by firm pricing, lower feed input costs, and agricultural efficiencies. The sharp recovery in profitability and strong cash generation prompted the board to declare a total dividend payout of R1.2 ($0.07) per share, including a special dividend.

Earnings surge as margins widen

The JSE-listed poultry producer reported a net profit of R1.34 billion ($82.9 million) for the year ended June 28, 2026, up from R571.16 million ($35.4 million) recorded in 2025, according to its audited annual financial statements. Pre-tax profit jumped to R1.87 billion ($115.7 million) from R751.56 million ($46.5 million) a year earlier, while headline earnings climbed 131.4 percent to R1.35 billion ($83.5 million) from R584.83 million ($36.2 million).

Operating profit before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled, increasing 101.8 percent to R2.14 billion ($132.4 million) from R1.06 billion ($65.5 million), widening the group’s EBITDA margin from 6.7 percent to 12.5 percent. Group revenue increased 7.7 percent to R17.05 billion ($1.05 billion) from R15.84 billion ($980 million), supported by firm front-end realization and higher sales volumes across core categories.

The substantial cash generation enabled the board of directors to declare a final gross cash dividend of R0.45 ($0.02) per share—up 125 percent from R0.2 ($0.01) declared in 2025—alongside a special gross cash dividend of R0.75 ($0.04) per share.

Chicken and feed divisions bolster earnings

The Chicken Division remained the group’s core revenue and earnings driver. Segment revenue rose 7.6 percent to R15.03 billion ($930 million) from R13.97 billion ($864.1 million), while segment EBITDA surged 138.1 percent to R1.63 billion ($100.8 million) from R685.23 million ($42.4 million). The division benefited from improved farming fundamentals, lower mortality, better feed conversion ratios, and the continued contribution of the second processing shift at its Hammarsdale facility.

The Animal Feed Division generated external and internal revenue of R7.10 billion ($440 million) compared with R7.39 billion ($457.1 million) in 2025, reflecting softer raw material commodity prices that were passed through to end markets. Despite the 3.9 percent revenue contraction, segment EBITDA rose 19.8 percent to R394.29 million ($24.4 million) from R329.2 million ($20.4 million) as lower yellow maize and soybean meal prices expanded processing margins.

The Waste-to-Value (W2V) Division, which converts poultry waste into renewable electricity, heat, and recycled water, recorded revenue of R100.44 million ($6.21 million) and an EBITDA of R119.08 million ($7.4 million), compared with R37.36 million ($2.3 million) in 2025. The result included an R83.5 million ($5.16 million) fair value gain from the remeasurement of mezzanine shareholder loans.

Turnaround lifts cash position, balance sheet metrics

Rainbow Chicken Limited, which unbundled from Remgro-backed RCL Foods on June 26, 2024, operates an integrated poultry value chain producing approximately 390,000 tons of chicken and 1 million tons of animal feed annually. Remgro Limited remains the ultimate holding company of the group.

The group’s financial recovery strengthened its balance sheet. Total assets expanded to R10.11 billion ($625.4 million) as of June 28, 2026, from R8.54 billion ($528.3 million) a year earlier. Total equity rose to R5.69 billion ($352 million) from R4.64 billion ($287 million), while retained earnings increased to R2.09 billion ($129.3 million) from R1.07 billion ($44.2 million). Cash and cash equivalents climbed 34.5 percent to R2.43 billion ($150.3 million) from R1.81 billion ($112 million), lifting the company’s return on invested capital (ROIC) to 36.2 percent from 16.3 percent.