RCL Foods (JSE:RCL) Operating Income : R509 Mil (TTM As of Dec. 2023)

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What is RCL Foods Operating Income?

RCL Foods's Operating Income for the six months ended in Dec. 2023 was R1,072 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was R509 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. RCL Foods's Operating Income for the six months ended in Dec. 2023 was R1,072 Mil. RCL Foods's Revenue for the six months ended in Dec. 2023 was R20,130 Mil. Therefore, RCL Foods's Operating Margin % for the quarter that ended in Dec. 2023 was 5.33%.

RCL Foods's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. RCL Foods's annualized ROC % for the quarter that ended in Dec. 2023 was 7.72%. RCL Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 21.55%.

RCL Foods Operating Income Historical Data

The historical data trend for RCL Foods's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RCL Foods Operating Income Chart

RCL Foods Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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-168.50

-176.60

748.19

523.69

21.46

RCL Foods Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															817.10	-293.41	584.13	-562.67	1,072.10

RCL Foods Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was R509 Mil.

RCL Foods (JSE:RCL) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

RCL Foods's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2144.2 * ( 1 - 29.05% )	/	( (22273.208	+	17120.976)	/ 2 )
=	1521.3099	/	19697.092
=	7.72 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	25301.361	-	2803.78	-	( 224.373	-	max(0, 11686.415	-	14021.951	+	224.373	))
=	22273.208

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	23106.961	-	5658.871	-	( 327.114	-	max(0, 8673.356	-	11611.483	+	327.114	))
=	17120.976

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

RCL Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2468.51	/	( ( (6349.203 + max(4586.007, 0))	+	(6440.692 + max(5538.287, 0)) )	/	2 )
=	2468.51	/	( ( 10935.21	+	11978.979 )	/	2 )
=	2468.51	/	11457.0945
=	21.55 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1562.801	+	5039.491	+	6681.838)	-	(2803.78	+	0	+	5894.343)
=	4586.007

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5363.598	+	5826.884	+	33.915000000001)	-	(5658.871	+	0	+	27.239)
=	5538.287

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

RCL Foods's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1072.1	/	20130.187
	=	5.33 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

RCL Foods Operating Income Related Terms

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RCL Foods (JSE:RCL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » RCL Foods Ltd (JSE:RCL) » Definitions » Operating Income

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Address

Ten The Boulevard, Westway Office Park, Westville, NL, ZAF, 3629

Website

https://www.rclfoods.com

RCL Foods Ltd is a leading African food producer with operations across South Africa, Swaziland, Namibia, Botswana, and Zambia. RCL Foods operates through the below segments, Groceries segment: Engaged in Culinary (includes Mayonnaise, Peanut Butter, Rusks etc.) and Pet Food and Beverages operations; Baking segment: Includes the Milling, Speciality, Pies, Sunbake and Sunshine bakeries and Buns and Rolls; Sugar segment: Includes Sugar and molasses-based feed (Molatek) operations; Rainbow segment includes the chicken business, grain-based feed (Epol and Driehoek) and Waste-to-Value operations. The company generates the majority of its revenue from the Rainbow segment.