Company News in Brief
RFG's suffers 20% slump in exports
Food producer RFG, SA's market leader for products including jams, frozen pies, and canned meats, said revenue rose 2.1% in its five months to end February, weighed down by an almost 20% slump in exports. Revenue in the international segment hit impacted by declining demand and shifting market dynamics, it said, with a large number of canned deciduous fruit contracts not being honoured by customers and these orders needing to be redirected to alternative markets where they were sold at lower prices. But the group also enjoyed an 8.7% climb in volumes for its regional segment - which saw price deflation of 0.6%, an improvement from deflation of 10.8%. Fresh foods showed strong revenue growth, with volume growth in both the ready meals and pie categories, it said. In long life foods, the fruit juice, dry foods and pulps and purees categories delivered double digit revenue growth. The long-life foods performance was adversely impacted by the shortage of canned pineapple products as well as pressure on canned meat sales due to consumer price resistance and higher promotional activity in the category.-FIN24
MTN records 15.4% revenue decrease
Africa's biggest mobile operator MTN said reported service revenue decreased by 15.4% on a reported basis to R177.8 billion in its year to end December but climbed 13.8% in constant-currency terms. Basic earnings per share (EPS) decreased by more than 100% to a loss of R5.31 per share, with MTN suffering an R11.7 billion writedown in Sudan, which erupted into civil war in April 2023. It reported a loss after tax of R11.2 billion, from a profit of R4 billion previously, while headline earnings per share slumped 68.9% to 98c. But its dividend still climbed about 4.5% to R3.45 (about R6.2 billion), which is above its guidance of a minimum of R3.30. CEO Ralph Mupita said MTN is also guiding a minimum of R3.70 per share for 2025, saying that despite challenging operational conditions, cash generation remains strong, and the group had sustained a healthy balance sheet. MTN is now eyeing some improved economic indicators, he said, including in Nigeria, which suffered a 70% fall in its currency against the US dollar. MTN expects to enjoy benefits of recently announced tariff increases in that market, he said, while even Sudan has seen improvements as the year ended, with conflict in some areas abating and allowing sites to be switched back on.-FIN24
Kenny Fihla takes over at Absa
Absa has named former Standard Bank deputy CEO Kenny Fihla as its new chief executive after he suddenly resigned from his former employer on Sunday night. The two rival banks made early morning statements on Monday announcing the executive changes, with Absa saying Fihla's appointment as CEO is effective from 17 June 2025, subject to regulatory approval. Absa added that its current interim CEO Charles Russon, who will stay on in that role until Fihla takes over, will work closely with its new leader to ensure a smooth transition, after which he will take a key senior role within the group executive committee.-FIN24
Food producer RFG, SA's market leader for products including jams, frozen pies, and canned meats, said revenue rose 2.1% in its five months to end February, weighed down by an almost 20% slump in exports. Revenue in the international segment hit impacted by declining demand and shifting market dynamics, it said, with a large number of canned deciduous fruit contracts not being honoured by customers and these orders needing to be redirected to alternative markets where they were sold at lower prices. But the group also enjoyed an 8.7% climb in volumes for its regional segment - which saw price deflation of 0.6%, an improvement from deflation of 10.8%. Fresh foods showed strong revenue growth, with volume growth in both the ready meals and pie categories, it said. In long life foods, the fruit juice, dry foods and pulps and purees categories delivered double digit revenue growth. The long-life foods performance was adversely impacted by the shortage of canned pineapple products as well as pressure on canned meat sales due to consumer price resistance and higher promotional activity in the category.-FIN24
MTN records 15.4% revenue decrease
Africa's biggest mobile operator MTN said reported service revenue decreased by 15.4% on a reported basis to R177.8 billion in its year to end December but climbed 13.8% in constant-currency terms. Basic earnings per share (EPS) decreased by more than 100% to a loss of R5.31 per share, with MTN suffering an R11.7 billion writedown in Sudan, which erupted into civil war in April 2023. It reported a loss after tax of R11.2 billion, from a profit of R4 billion previously, while headline earnings per share slumped 68.9% to 98c. But its dividend still climbed about 4.5% to R3.45 (about R6.2 billion), which is above its guidance of a minimum of R3.30. CEO Ralph Mupita said MTN is also guiding a minimum of R3.70 per share for 2025, saying that despite challenging operational conditions, cash generation remains strong, and the group had sustained a healthy balance sheet. MTN is now eyeing some improved economic indicators, he said, including in Nigeria, which suffered a 70% fall in its currency against the US dollar. MTN expects to enjoy benefits of recently announced tariff increases in that market, he said, while even Sudan has seen improvements as the year ended, with conflict in some areas abating and allowing sites to be switched back on.-FIN24
Kenny Fihla takes over at Absa
Absa has named former Standard Bank deputy CEO Kenny Fihla as its new chief executive after he suddenly resigned from his former employer on Sunday night. The two rival banks made early morning statements on Monday announcing the executive changes, with Absa saying Fihla's appointment as CEO is effective from 17 June 2025, subject to regulatory approval. Absa added that its current interim CEO Charles Russon, who will stay on in that role until Fihla takes over, will work closely with its new leader to ensure a smooth transition, after which he will take a key senior role within the group executive committee.-FIN24
