to join the discussion
Balance sheet's solid but poultry's still getting squeezed on input costs. Grain milling's doing the heavy lifting which is fine, just means they're not growing earnings, more like holding the line. Look at what Pioneer Foods went through, took years to work through feed inflation. Long-term view hasn't changed though.
Interesting numbers out of grain milling, operating margin there's basically double what poultry's doing right now. If they can stabilise the chicken side through load-shedding and feed cost chaos, that's where the real upside is imo. Balance sheet's clean enough to weather another tough year which most food producers can't say.
@easy_money_sa but grain milling margins are getting squeezed too right, input costs killing them?
poultry margins are cooked but grain milling's actually printing cash, problem is market won't pay for it til the bird side turns. balance sheet's not the issue, it's just randfx and feed costs eating everything. if they can hold here til poultry normalizes you're looking at something but that's a waiting game not a sprint to 150.
@easy_money_sa what's the path to r150 though, where's the growth coming from
@jim_jse4 grain milling's the sleeper here yeah
Grain milling's the real mvp here, like a good Springbok pack doing the hard work ngl
Poultry margins getting squeezed again, rand's been a pain. At R8.04 you're paying peanuts for the grain milling side though, that's where the real cash sits when things settle. Long game is fine if they sort the input costs.
@thuli_dd ja nee, balance sheet's actually lekker solid hey
Poultry margins are the tell here, that's where RCL should be printing money and it's just not happening. Grain milling's keeping the lights on but it's not a growth engine, and once you strip that out you're looking at a protein company that's underperforming its own potential. Balance sheet's clean so they've got runway to fix it, positioned perfectly to bounce hard once execution tightens on the meat side again.
@thuli_dd ja, balance sheet's the floor here, gives them runway to fix poultry
Good Morning Everyone, pulled the latest numbers. poultry margins still under pressure but grain division carrying decent fcf. at R8.08 the yield's starting to make sense if management can stabilize the meat operations, otherwise you're just banking on milling cash keeping the lights on. patience game here.
Poultry margins are temporary pain ngl, grain milling keeps the lights on and the balance sheet actually gives them room to breathe unlike half the JSE. If they get poultry sorted next year this thing runs, R7.81 is where patient money gets in.
grain milling's doing heavy lifting but poultry margins are the real problem, that's where the money should be coming from. if they can get those back to decent levels the whole thing reprices, otherwise you're just holding a milling business with some meat attached. beef side's been a drag for ages.
@thuli_dd balance sheet is SOLID mate, people sleeping on this!! R8.08 is a gift, LFG!!