Having implemented a solid growth strategy and experiencing a period of strong demand, lower input prices and a stronger rand, fully integrated chicken and animal feed producer Rainbow Chicken has reported higher profitability in the six months ended December 28, 2025.

The group increased its earnings attributable to equity holders by 111% year-on-year to R669-million for the six months under review, while earnings before interest, taxes, depreciation and amortisation (Ebitda) were 81.4% higher year-on-year at R1.05-billion.

Notably, Rainbow achieved a higher Ebitda margin of 12% for the reporting period, compared with the prior comparable six months.

Headline earnings increased by 110% year-on-year to R669-million, with headline earnings per share having increased from 35.64c in the prior comparable half-year period, to 74.81c in the half-year under review.

The company declared a 15c interim dividend for the first time since its listing on the JSE in June 2024. 

Meanwhile, the chicken division reported Ebitda of R819-million, compared with R362-million in the prior comparable period, which marked a 126% year-on-year increase. The chicken division reported a higher Ebitda margin of 10.6%, compared with 5.2% in the prior comparable period.

In turn, the animal feed division generated R212-million of Ebitda at a margin of 5.8%, which is on par with the prior comparable half-year period.

The company’s waste-to-value division, which converts waste from poultry farms and processing plants into renewable energy, reported 11% lower Ebitda at R20.4-million in the reporting period. The decrease is mostly attributable to the non-renewal of a contract for the sale of green gas certificates, which was offset by revenue earned on electricity and water generation.

Rainbow says the Worcester plant continues to produce acceptable results, but the Rustenburg plant has operational issues that are being attended to.

CEO Marthinus Stander says the company benefitted from strong volume demand, improved pricing and enhanced channel and product mixes in the six months under review, while managing to achieve a good recovery in margins for external animal feed sales.

For context, 71% of Rainbow’s 507 535 t of animal feed produced in the six months under review were sold internally for its own operations.

Rainbow has been focused on cost management, agricultural performance and operational efficiencies across its entire value chain, but lower commodity input costs aided a reduction in feed costs in the reporting period.

Stander affirms that the company remains focused on becoming South Africa’s market-leading chicken producer with best-in-class practices at a low cost to produce, which delivers sustainable value to all stakeholders.

Rainbow’s strong financial position – R1.7-billion of cash and cash equivalents as of December 28 – enables the company to advance planned capital investments and future growth initiatives.