Food producer RFG Holdings has reported a 2.1% increase in total revenue for the five months ending February 2025, reaching R3.1 billion. This growth was driven by a strong 5.6% rise in regional sales, which helped offset a sharp 19% decline in its international segment. The regional boost was supported by increased demand for fresh and longlife foods, despite ongoing pressure on consumer spending in South Africa. Ready meals and pies performed particularly well, while longlife products like fruit juice, dry foods, and pulps also showed strong double-digit growth. The company credited new product launches, including its fruit nectar juice range, for attracting customers despite constrained spending patterns.
In contrast, the group’s international revenue faced challenges. Export volumes dropped significantly due to unfulfilled canned deciduous fruit contracts and reduced pineapple supplies following drought conditions in Eswatini. Additionally, a stronger rand further impacted the group’s international turnover. This combination of factors resulted in a 19.1% decline in international revenue, adding pressure to margins and making it unlikely that RFG will meet its operating profit margin targets for the first half of the year.
Looking ahead, RFG expects the positive momentum in its regional segment to continue, supported by improved consumer conditions such as lower inflation and interest rate relief. However, the company remains cautious, noting that South African consumers are still facing financial strain. In the international market, RFG expects its canned fruit exports to improve from March onwards, which should help recover some of the lost revenue in the coming months.