Rainbow Chicken earnings to surge more than 100%

Rainbow Chicken Limited has signalled a massive leap in profitability, forecasting that its interim earnings could more than double for the six months ended 28 December 2025. In a trading statement released on 4 February 2026, the JSE-listed poultry producer revealed it expects earnings per share (EPS) to soar between 95.2% and 115.2% compared to the prior period.

The group anticipates its EPS will land between 69.46 and 76.57 cents, a significant jump from the 35.58 cents reported in the previous comparative half year. Headline earnings per share (Heps), a key metric for South African investors which excludes once-off items, is expected to show a similar trajectory, rising by as much as 114.9% to a maximum of 76.59 cents.

Rainbow Chicken share price

The ‘brilliant basics’ driving growth

Rainbow, which recently unbundled from RCL Foods to list as a standalone entity in 2024, attributed the anticipated windfall to its “relentless focus” on core operational fundamentals.

This includes significant improvements in bird health and farming productivity, streamlining processes across its processing plants and supply chain and a critical boost from reduced commodity input costs, which typically account for the bulk of poultry production expenses.

The company also highlighted strong consumer demand as a primary driver, suggesting a resilient market position despite broader macroeconomic pressures.

Read:
Rainbow Chicken returns to JSE as a standalone group
Rainbow listing today amid expected earnings volatility

Navigating the commodity cycle

The projected results mark a continued recovery for Rainbow, which previously faced the “perfect storm” of high feed prices, avian influenza outbreaks, and the costs associated with national electricity load shedding. The current downward trend in grain and commodity prices has provided a much-needed tailwind, allowing producers to expand margins as input costs moderate.

Shareholders can expect the full release of the unaudited interim financial results on or around 11 March 2026.

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.