Rainbow Chicken Limited more than doubled headline earnings in its 2026 financial year and declared a special dividend after stronger poultry demand, lower commodity prices and operational improvements lifted profitability.
The South African poultry producer reported headline earnings of R1.35 billion for the 52 weeks ended June 28, 2026, an increase of 131.4% from R584.83 million in the comparative year. The audited results, published on August 28, cover the period following the financial year ended June 29, 2025.
Revenue increased 7.7% to R17.05 billion from R15.84 billion. Earnings before interest, taxes, depreciation, amortisation and impairment rose 101.8% to R2.14 billion, compared with R1.06 billion a year earlier, showing that profit growth substantially outpaced the increase in sales.
Headline earnings per share climbed 130.1% to 150.87 cents from 65.57 cents. Basic earnings per share increased 133.5% to 149.55 cents, up from 64.04 cents in the previous financial year.
Final and special dividends
Rainbow Chicken’s board declared a final gross cash dividend of 45.00 cents per share, more than double the 20.00 cents per share final dividend declared for the 2025 financial year. It also approved a special gross cash dividend of 75.00 cents per share.
The special payment takes the company’s total distribution for the 2026 financial year to 135.00 cents per share. The special dividend remains subject to approval from the South African Reserve Bank. Rainbow said shareholders would be informed of the approval by or before the expected finalisation date of September 29, 2026.
A 20% dividend-withholding tax will apply to shareholders who are not exempt. After that tax, the final dividend will amount to 36.00 cents per share, while the net special dividend will be 60.00 cents per share.
The last day for investors to trade Rainbow Chicken shares and qualify for the final and special dividends is October 6, 2026. The shares are due to begin trading ex-dividend on October 7, followed by the record date on October 9. Payment of both distributions is scheduled for October 12, subject to the required approval for the special dividend.
Market and operational factors support growth
Rainbow attributed the stronger annual performance to a combination of favourable trading conditions and internal improvements. Demand for poultry products increased during the year, while lower commodity prices eased pressure on the group’s cost base.
Agricultural and operational gains also contributed to the result, alongside cost efficiencies across the business. Together, these factors helped Rainbow convert its single-digit revenue increase into substantially stronger earnings growth.
The rise in earnings before interest, taxes, depreciation, amortisation and impairment was particularly pronounced, with the measure increasing by slightly more than 100%. Headline and basic earnings per share recorded even larger percentage gains, broadly reflecting the improvement in group profitability.
The company’s comparative period covered the 52 weeks ended June 29, 2025. For the latest reporting period, Rainbow’s consolidated annual financial statements were audited by Ernst & Young Inc., which issued an unqualified audit opinion.
The combination of higher earnings and the special dividend marks a significant increase in distributions to shareholders for the year. However, payment of the special dividend will depend on the Reserve Bank process being completed within the timetable set out by the company.
