The company said that profit after tax increased by R120m to R290m.
The food producer saw an increase in both its fresh and long-life products. Fresh foods sales were up 26.5% while long-life products shot up by 56.7% with juice and canned meat the best-performing. The company also saw increase in sales for Saharan Africa (excluding SA) which jumped 67.3%.
The group enjoyed growth in the local market with 73% of turnover coming from SA up from 70% in 2015.
Rhodes declared a dividend of 42.2c per share. This follows the maiden dividend of 24.8c declared for the 2015 financial year.
The company’s international turnover was up 22.6%, but the group said that trading in internationally markets had been difficult. The company said that price pressure was an issue in certain markets including China.
The severe drought and water shortages that SA experienced in 2016 hurt the business. "These factors remain a risk and could impact on the group’s production costs and volumes in the year ahead if there is no improvement in climatic conditions," the company said in statement.
Acquisitions played a big role in the company’s growth during the period, contributing R651.3m to the group’s turnover, which represents 21.5% of the revenue growth.
The acquisitions of Deemster, General Mills and Alibaba Foods, were completed in the first half of the year.
The group said that through the acquisitions Rhodes accelerated its entry into the bottled salads and pickles, bakery products and snacking markets.
Rhodes said that it would expand its presence in sub-Saharan Africa and maintain its focus on private label ranges produced for major retailers.
The company said export volumes were expected to grow in the coming year but currency strength would have an adverse effect on the company’s international segment. Over the past year the rand depreciated by 17.4% in value against the group’s basket of trading currencies.
The company said that in the coming year the completion and integration of the Durban-based spices and condiments producers Pakco and KwaZulu-Natal-based pie producer Ma Baker were a priority for the group. Rhodes purchased the two companies for R200m and R212m respectively.
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