Rainbow Chicken doubles earnings, pays first dividend since JSE listing

Rainbow Chicken has reported bumper results for the six months ended December 2025, and will pay its first interim dividend since unbundling from parent company RCL Foods to list on the Johannesburg Stock Exchange (JSE).

The poultry producer more than doubled its half year earnings, which jumped by over 110% to R669,6 million.

Headline earnings per share (HEPS) increased over 109% to 74.81 cents a share.

Company revenue was up 11.3% to R8,8 billion.

Rainbow attributed this improved profitability to the ongoing implementation of its growth strategy, supported by strong demand for chicken and lower input prices through feed or maize costs. It also cited the strengthening of the South African Rand versus US Dollar.

The company declared a maiden, interim dividend per share of 15 cents - the first since listing on the JSE in June 2024.

Chief Operating Officer, Wouter de Wet, says one has to look back five years to trace the genesis of the turnaround of Rainbow Chicken.

He highlights the importance of their feed operation in driving chicken production, and how virtually splitting them into separate businesses has worked for Rainbow.

"I think what we've done successfully is to focus over the last couple of years in terms of recovering back to a better margin, and with that margin in place now we're in a position where we can focus on good service and providing competitive feed for our customers... It's also got a key impact on our chicken business, because you need a good, consistent supply of top-quality feed obviously."

Even as consumers reach increasingly for chicken in view of high red meat prices and beef price hikes, is there a danger Rainbow could outgrow its market with continued expansion?

At the end of the day, this is still a commodity business, de Wet remarks.

"I think what we've seen in recent years is responsible growth in the market and our strategy at least, is to grow in line with the demand from our consumers and our quick service restaurant customer segment."

Scroll up to the audio player to listen to the interview with the Rainbow Chicken COO