Rhodes Food Group Holdings Limited. JSE: RFG

RFG shares

Background of RFG

  • Rhodes Food Group (RFG) Holdings is a producer of fresh, frozen and long-life foods, based in Groot Drakenstein in the Western Cape. The group has processing and agricultural facilities in South Africa and Swaziland, and products are distributed and put up for sale in southern Africa and selected international markets.

  • The company’s products include canned fruit, vegetable and meat products, jam, chilled ready-made meals, pastries, pies and dairy products, sold under a portfolio of brands including Rhodes, Bull Brand, Magpie, Hazeldene, Trout Hall and Portobello. These are complemented by various private label products packed for domestic and international retailers. The group has an exclusive arrangement with Woolworths to supply ready-made meals and Ayrshire dairy products for customers to buy.

  • RFG Holdings shares have been listed on the Johannesburg Stock Exchange (JSE) since 2014, and today have a market cap of R6.3 billion. RFG Holdings share price has risen strongly on the live online stocks chart since listing.

RFG Shares Growth Driver

  • Having been listed since 2014, RFG Holdings has a young history on the JSE, and 2015 marked the release of the group’s first annual financial data as a listed company. The group decided to buy into an aggressive growth strategy in order to complement organic growth and expand into new product categories, completing four strategic acquisitions for a total purchase consideration of R390 million. Acquisitions included fruit juice manufacturer Pacmar, fruit concentrates and purees company Boland Pulp, regional pie manufacturer Saint Pie and canned vegetable and salad bottling business Deemster.

  • These acquisitions were successfully integrated into the company and have contributed to strong operational performance from the group, backed up by significantly increased capital expenditure to expand production, and the settling of long-term debt. Total turnover for the year was up by 23.7% to R3 billion, whilst after-tax profits rocketed 105.9% to R169 million. The group benefited from ongoing product innovation, the ongoing strength of its flagship brands and long-term customer relationships. This helped the group to successfully chart a course through the difficult economic environment.

  • In 2016, RFG Holdings announced that it would also buy Durban-based food producer Pakco for R200 million, thereby taking control of the iconic Bistro brand and various other smaller brands, delivered to the South African market and eight other African countries.

  • Interim financial results for 2016 highlighted another impressive showing, with profits up by 89% from the corresponding 2015 period, and shareholders enjoying headline earnings per share growth of 36.9%.

RFG Group Investor Tip

  • On the back of sustained excellence, RFG Holdings share price has grown strongly in the first year on the JSE, rising from R11.10 cents when listing, up to R28.50 by October 2016. This makes the share one of the best-performing food stocks on the bourse, and more growth is forecast in the future. With stellar financial results, strong growth, proven ability to identify acquisitions and healthy earnings for shareholders, RFG shares are undoubtedly one of the hot stocks to buy at present.

RFG Major Shareholders

Government Employees Pension Fund and Old Mutual.

  • Sector

    Consumer Staples

  • Industry

    Consumer Products

  • Sub industry

    Packaged Food

How to buy RFG Group Shares

  • RFG : How to buy RFG Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy RFG Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in RFG Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase RFG Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in RFG Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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