Rainbow Chicken lists on the JSE main board
For more on the company’s future outlook, CNBC Africa is joined by Marthinus Stander, Managing Director, Rainbow Chicken.
Mon, 01 Jul 2024 11:23:35 GMT
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AI Generated Summary
- Rainbow Chicken experiences a surge in stock price post-listing on the JSE main board, attracting investor interest in South African stocks.
- The company focuses on cost reduction and profitability amidst a challenging economic environment and infrastructure constraints.
- Short-term plans include sustaining profitability, strategic investments, and disease risk management to enhance shareholder value and competitiveness.
Shares of Rainbow Chicken, the latest addition to the JSE main board, have been making waves since their listing last Wednesday. The company has seen a nearly 30% surge in its stock price, currently trading at around R4.90 per share, valuing the group at approximately R4.1 billion. Marthinus Stander, the Managing Director of Rainbow Chicken, joined CNBC Africa to discuss the company's future outlook in the midst of newfound investor interest in South African stocks. Stander expressed cautious optimism about the market's valuation of Rainbow Chicken, highlighting the need to observe the reaction of RCL Foods shareholders who recently acquired Rainbow shares. He emphasized the importance of creating a low-cost value chain to mitigate volatility in the poultry sector. Despite challenges such as a strained consumer base and infrastructure constraints, Rainbow Chicken aims to focus on cost reduction and profitability. The company's short-term plans include sustaining profitability, investing strategically, and enhancing shareholder value. Stander also addressed the impact of governmental changes on Rainbow Chicken's operations, particularly in the context of agricultural and land reform policies. He remains hopeful for the future, citing the company's proactive measures to address disease risks, such as avian influenza. Rainbow Chicken looks to maintain its profitability and competitiveness in the dynamic poultry industry landscape.
