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Rainbow Chicken Limited (Rainbow), the poultry and consumer goods company partly owned by South Africa’s richest man Johann Rupert, reported revenue of R15.8 billion ($895.6 million) for the year ended June 29, 2025.
Turnaround drives earnings surge
The JSE-listed group, which rejoined the exchange in June 2024 after being unbundled from RCL Foods, posted a 9 percent rise in revenue to R14.53 billion ($818.37 million) from R13.33 billion ($750 million) a year earlier, thanks to stronger sales in its Chicken division.
Headline earnings climbed more than threefold to R584.8 million ($32.95 million) from R180.3 million ($10.16 million). A sharp drop in finance costs—down R179.7 million ($10.12 million)—also gave the bottom line a lift, thanks to the debt-to-equity conversion completed with RCL Foods earlier in 2024. Return on invested capital improved to 16.3 percent, while cash generated from operations rose 63.6 percent to R1.9 billion ($107.26 million).
These results mark Rainbow’s first full-year performance as an independent company, a significant step in the recovery plan it set in motion back in 2021. By improving feed quality, fine-tuning its farming practices, and making processing more efficient, the group has managed to cut costs and strengthen its operations across the board.
Chicken division leads gains
The chicken division led the way, with revenue rising 9.6 percent on the back of expanded Hammarsdale capacity, a stronger product mix, and broader sales channels. Lower input costs and reduced loadshedding expenses gave earnings a sharp lift, with EBITDA climbing 102.8 percent and EBIT surging 295.1 percent.
Animal feed showed a smaller revenue gain of 2.8 percent but proved more efficient, posting a 30 percent increase in EBITDA and a 34.7 percent rise in EBIT. The recovery was supported by a 5.3 percent rebound in volumes after last year’s avian influenza disruptions and better mill performance.
Rupert-backed poultry giant regains footing
For the year, Rainbow’s assets rose 19.4 percent to R8.54 billion ($481.99 million) from R7.15 billion ($403.39 million). Retained earnings more than doubled to R1.07 billion ($60.66 million), backed by improved operations across chicken, feed, and waste-to-value.
With its balance sheet strengthened, the board declared a maiden cash dividend of R0.2 ($0.011) per share, totaling R178.61 million ($10.07 million). The payout, the first since the relisting, will be distributed on Sept. 29, 2025, to shareholders on record as of Sept. 26.
Rainbow’s latest results underline how the company, once under pressure, has regained stability and profitability since its market return. The group’s sharpened operations and financial discipline suggest it is now better positioned for steady growth.
