Rainbow Chicken Set to Soar as Stand-Alone Entity on Johannesburg Stock Exchange
Rainbow Chicken, one of South Africa’s most recognizable brands, will begin trading on the Johannesburg Stock Exchange (JSE) from July 1. The move marks a significant milestone as the company unbundles from its former parent company, RCL Foods, to become a stand-alone entity.
The decision to list Rainbow Chicken on the JSE follows a thorough review by the board of South Africa’s consumer goods giant, RCL Foods Ltd. Earlier this year, the board announced its plans to spin off its vertically integrated poultry division. The newly independent Rainbow Chicken now operates 165 farms, eight hatcheries, three primary processing plants, and two further processing factories. Additionally, it owns six feed mills under the brands Epol and Driehoek, and holds a 50% share in a joint venture known as "Matzonox," which operates two waste-to-value facilities.
The path to independence offers over 890 million ordinary shares on a one-to-one basis for each share in RCL Foods, with shares officially trading from July 1.
A New Era for Rainbow Chicken
For CEO Marthinus Stander, this transition is not just a strategic move but a defining moment for Rainbow Chicken. "We aim to re-establish and rebuild our chicken and feed businesses as best-in-class in terms of customer-centricity, delivering value via innovation and leveraging our heritage," Stander said. "This bold move heralds a wave of exciting opportunities for growth in both our business and our people. Our commitment to a smooth transition ensures minimal disruption to our operations. We have robust plans to maintain stability and efficiency, continuing our tradition of excellence."
Joining Stander at the helm of the newly independent company are Kerry van der Merwe as Chief Financial Officer and Wouter De Wet as Chief Operating Officer.
The Rise of Rainbow Chicken
Founded as a family business in 1960, Rainbow Chicken has grown into one of the largest poultry companies in South Africa, second only on the African continent in terms of annual slaughterings, with 197 million poultry processed yearly. According to WATTPoultry.com’s Top Poultry Companies survey, Rainbow Chicken has continually solidified its position in the market.
As part of RCL Foods, Rainbow Chicken saw significant achievements despite challenging market conditions. For the half-year ending December 31, 2023, the company achieved an operating profit of ZAR 112.2 million (US$6.15 million) from a revenue of just under ZAR 7.25 billion. Although it had only recorded an operating profit in one of the previous three financial years, recent strategic revisions have improved the operational resilience of the entire business.
Looking ahead, Rainbow Chicken is poised for substantial growth, with plans for innovative product developments, strengthened community initiatives, and an enhanced market presence.
For more information, you can visit Rainbow Chicken’s official website at Rainbow Chicken.
With this historic unbundling and JSE listing, Rainbow Chicken is set to embark on a new chapter of growth and innovation, promising a bright future for both the company and its stakeholders.
