Ted Black: NOT buying Rainbow shares isn’t chicken, it’s the rational move

Rainbow Chickens has returned to the JSE, a notable shift after significant financial struggles and losses since its 1998 peak. Johann Rupert humorously reflected on the decision to acquire the company, acknowledging his late mother's caution. A deep dive into cash-based productivity reveals past mistakes and the need for better asset management. Despite improvements from 2003-2009, recent trends, including the 2024 forecast, highlight ongoing challenges in achieving profitability and cash return targets.

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By Ted Black

Rainbow Chickens, taken out of RCL Foods, has relisted on the JSE. In 1998 it posted a result that brought total operating losses for three years to R365 million. Market Cap was R280 million – R1,5 billion lower than it was in 1992 after buying Bonny Bird/EPOL. 

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