RCL Foods financials for the six months ended December 2025

“While adverse sugar-market dynamics weighed on overall group results, the balance of the business delivered an improved underlying performance, reflecting disciplined execution and effective management of factors within
our control.”

Paul Cruickshank – Chief Executive Officer

Key Features

• Good underlying Groceries result
• Continuous improvement initiatives continue to support profitability across the business
• Volumes remain subdued across most categories

Financial Highlights

• Revenue continuing operations -1.9% to R13.3 billion
• Underlying EBITDA continuing operations -14.6% to R1.2 billion
• Underlying HEPS continuing operations -22.4% to 77.4 cents
• HEPS total operations -30.6% to 75.9 cents
• Interim dividend per share -25.0% to 15.0 cents

Operational Review

Groceries (Culinary, Pet Food, Beverages)

Groceries delivered a good underlying result driven by improved margins in Culinary, higher Pet food volumes and a favourable product mix in Beverages.

Culinary represents a core pillar of our growth strategy and sits at the heart of our branded value proposition. We delivered a positive result in a highly competitive market. Although volumes were down 1.1% compared to the prior period, higher
margins due to CI and NRM initiatives, contributed to the improved result. Whilst the volume decline was largely due to prevailing market conditions, peanut butter was further impacted by cheaper, duty-free imports as the tariff application
remains with government for approval.

Pet food delivered an improved result versus the prior period driven primarily by higher volumes (up 2.2% compared to the prior period), partially offset by higher production and distribution costs incurred as part of the focus on improving service levels. We are driving distribution depth in new and growing channels and have a clear plan to grow within the speciality-pet and retail-spinoff channels, which is a strategic focus.

As referenced in our media release issued on 1 March 2026, production at our dry pet food plant was temporarily paused. This affected our ability to fully service demand towards the latter part of the current period and into the second half of
the financial year. Processes to restart the facility have commenced, with full production expected to resume shortly.

Despite lower volumes (down 9.3% compared to the prior period), Beverage delivered a result which was ahead of the prior period, due to focused efforts to drive a more profitable product mix and CI cost savings.

Baking (Bread, Buns and Rolls, Milling, Pies, Speciality)

Baking delivered an underlying performance in line with the prior period, amidst a challenging trading environment, with volume declines across the Bread, Buns and Rolls, and Milling categories offset by good performances in Pies and Speciality.

The Bread, Buns and Rolls operating unit saw a 4.1% volume decline from the previous period, mainly due to intensified competition in the price-sensitive bread market. We continue to focus on manufacturing excellence while driving innovation in the category.

Milling volumes declined 8.3% compared to the prior period due to weaker demand, resulting in a decline in the Milling result. Our priorities for the second half of the financial year will be to regain lost volumes as well as delivering on the CI initiatives.

Pies delivered an improved result, with volumes increasing by 3.0% compared to the prior period. The volume benefit was partially offset by an unrecovered increase in red-meat pricing following the foot and mouth disease outbreak that began in early 2025. Pies growth on the prior period was further supported by CI savings.

Speciality has delivered another good result, despite marginally lower volumes, through successful innovations and operational efficiencies.

Sugar (Sugar, Molatek Molasses-Based Animal Feed)

Sugar continues to experience significant headwinds and volatility due to inadequate tariff protection, declining world market prices and the strengthening Rand which have resulted in a substantial increase in deep sea imports adversely impacting the results. Local market volumes have been displaced by the high volumes of deep sea imported sugar, resulting in a higher proportion of local sugar supply having to be sold in the lower priced export market. The latest import duty gazetted on 4 December 2025 remains insufficient to protect the local market from the influx of imported sugar. Additionally, local market sales pricing remained unchanged, creating margin pressure as input cost increases were absorbed. Despite these challenges, the business performed well operationally through
continuous improvements at our mills.

The Malelane mill has shown a notable operational improvement as operational processes have been systematically established and refined.

The quality of the cane crop is good, supported by an enhanced fertiliser and irrigation programme.

Molatek was down on the prior period with volumes declining by 13.9% from the comparative period, primarily due to increased rainfall which boosted natural grazing resources, and continued challenges related to the foot and mouth
disease outbreak.

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RCL Foods is a South African food manufacturer producing more than 20 much-loved brands including Yum Yum peanut butter, Nola mayonnaise, Ouma rusks, Pieman’s pies, Number 1 mageu, Sunbake and Sunshine bread, Supreme flour, Selati sugar, Bobtail and Catmor pet food and Molatek animal feed.

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