RCL FOODS LIMITED - Trading statement year ended June 2026

Trading statement – year ended June 2026

RCL FOODS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000179438
Share Code: RCL
(“RCL FOODS" or “the Group”)

TRADING STATEMENT – YEAR ENDED JUNE 2026

Shareholders of RCL FOODS are advised that it expects its Headline
earnings per share (“HEPS”) from total operations* for the year
ended June 2026 (“current period”) to be between 101.6 cents (-
35.0%) and 109.4 cents (-30.0%) when compared to the reported HEPS
of 156.3 cents from total operations for the year ended June 2025
(“comparative period”). Earnings per share (“EPS”) from total
operations for the current period is expected to be between 81.0
cents (-55.0%) and 90.1 cents (-50.0%) when compared to the
reported EPS from total operations of 180.1 cents for the
comparative period.

The expected difference in HEPS and EPS in the current period
relates largely to the impairment of goodwill and brands in the
Sunshine cash generating unit (20.3 cents per share impact). This
impairment was triggered as a result of declines in profitability
as the business has struggled to recover volumes following the
labour disruption at its Durban factory in December 2024. The
difference in HEPS and EPS in the comparative period is largely due
to the profit on disposal of the discontinued operations and
insurance proceeds received, which increased the comparative period
EPS by 21.4 cents and 2.8 cents respectively.

Underlying HEPS** from total operations for the current period is
expected to be between 102.3 cents (-30.0%) and 109.6 cents (-
25.0%) when compared to the reported underlying HEPS of 146.1 cents
from total operations for the comparative period.

The decrease in underlying HEPS from the comparative period is
largely due to a significant decline in profitability in our Sugar
business unit and its associate Royal Eswatini Sugar (RES), as well
as declines in our Pet Food operations. The profit decline on
income statement lines above share of profit of associates is
meaningfully lower than the underlying HEPS decline as a result of
RES’s material decline in profitability.

Sugar reported a significantly lower result due to high volumes of
deep-sea imports, enabled by the absence of effective tariff
protection, which resulted in lower local-market sales (total
industry local market volumes down 10.3%) and as a result a greater
proportion of sugar volume being sold into the lower priced export
market (total industry export market volumes up 48.3%).
International raw sugar prices fell by 22.6% on average over the
year, which together with a stronger average Rand/dollar exchange
rate, lowered realised Rand export prices for the current year. Due
to the ineffective tariff, the Sugar Industry did not take any
sales price increases in the local market during the current year,
despite incurring inflationary input cost increases. The gap
between realised local and export sales prices was in the region of
R7,000/ton (51.9% lower than the local sales price) on average
during the current year, highlighting the significant impact that
an increase in export sales has on profitability for our Sugar
business. An effective tariff is crucial for the sustainability of
the sugar industry and as at the date of this trading statement,
the matter of the tariff remains unresolved with International
Trade Administration Commission (ITAC). RES’s decline was largely
due to similar market dynamics as well as a slow start to the
crushing season due to late summer rains.

Our Pet Food business was negatively impacted by food-safety
related production disruptions (as previously reported in the press
on 5 March 2026), which constrained supply and our ability to meet
demand, and also resulted in higher stock write-offs through the
second half of the current period. Pet Food sales volumes were down
20.5% versus the comparative period.

Both Culinary and Baking delivered good performances aided by
Continuous Improvement and Net Revenue Management initiatives,
despite volume pressure being experienced across most of their
product categories.

The Group’s financial results for the current period are expected
to be released on SENS on 31 August 2026.

The financial information on which this trading statement is based
has not been reviewed and reported on by the Group’s external
auditors and is the responsibility of the directors.

*Total operations represents the total of continuing and
discontinued operations. Discontinued operations results relate
solely to the comparative period, and to the Rainbow and Vector
segments. The Rainbow segment was unbundled on 1 July 2024 (the
beginning of the comparative period), whilst accounting for the
disposal of the Vector segment was finalised during the comparative
period. Continuing operations relates to the remaining RCL FOODS
business, post the Vector disposal and Rainbow unbundling. The
remaining RCL FOODS business comprises the Groceries, Baking, Sugar
and Group (shared services) segments.

**Underlying HEPS excludes material once-offs and accounting
adjustments and relates primarily to fair value adjustments on the
Group’s commodity raw material procurement positions in the current
and prior periods and the R61,5 million (post-tax) partial recovery
of the sugar industry levy in the comparative period.

Westville
17 August 2026

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/08/2026 08:00:00
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