OPERATING CONTEXT

RCL FOODS operates in a complex environment where macro-economic, social, regulatory, natural and technological factors can impact the Group’s strategy. These factors form the foundation for defining RCL FOODS’ risk universe, as represented below.

The risk universe considers risks that affect the long-term performance and positioning of the Group, and includes 15 risk portfolios that RCL FOODS and its divisions are committed to managing.

Detail of the risk assessment process, risk portfolio context and RCL FOODS’ response to these risks is included on here of the risk management report available on our website at www.rclfoods.com.

 

RCL FOODS RISK UNIVERSE

Note: SC = supply chain.

IDENTIFYING AND MAXIMISING OPPORTUNITIES

We believe that RCL FOODS is uniquely positioned, not only to manage the above risks, but to identify substantial opportunities and take advantage of them. We have a culture based on seeing and doing things differently, and we view risks as opportunities to innovate using our unique capabilities and strengths, namely:

  • our portfolio of leading brands ranging from staples to top-end, added-value offerings
  • our integrated business model which includes our own route-to-market featuring an integrated outbound supply chain and world-class technology and systems
  • our significant size and scale, combined with diversification, to counter cyclicality and provide a platform for expansion
  • our management team's extensive knowledge and experience in the South African food industry and our strong operational track record of delivering steady, through-the-cycle revenue growth
  • our expansion into Africa through a number of projects in sub-Saharan Africa, in line with our lowrisk African expansion strategy
  • the support of Remgro Limited, a highly regarded strategic shareholder.

Our ambition to grow our revenue and increase our EBIT margin remains entrenched throughout the Group. Our strategic thrusts are the key levers that will help achieve this ambition, taking cognisance of the changing nature of the Group, as well as the significant opportunities that the enlarged entity represents.

Strong focus and the successful implementation of these strategies will position RCL FOODS optimally to add significant shareholder value over the next few years.