RFG Holdings (JSE:RFG) Operating Income : R757 Mil (TTM As of Sep. 2023)

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What is RFG Holdings Operating Income?

RFG Holdings's Operating Income for the six months ended in Sep. 2023 was R411 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was R757 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. RFG Holdings's Operating Income for the six months ended in Sep. 2023 was R411 Mil. RFG Holdings's Revenue for the six months ended in Sep. 2023 was R4,108 Mil. Therefore, RFG Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 10.00%.

Warning Sign:

RFG Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.

RFG Holdings's 5-Year average Growth Rate for Operating Margin % was -1.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. RFG Holdings's annualized ROC % for the quarter that ended in Sep. 2023 was 12.21%. RFG Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 20.68%.

RFG Holdings Operating Income Historical Data

The historical data trend for RFG Holdings'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.

RFG Holdings Operating Income Chart

RFG Holdings Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Operating Income

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314.02

392.20

391.96

372.28

573.10

RFG Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial															187.79	241.03	332.08	345.93	410.78

RFG Holdings 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was R757 Mil.

RFG Holdings (JSE:RFG) Operating Income Explanation

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

RFG Holdings's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	821.55 * ( 1 - 27.4% )	/	( (4941.488	+	4826.477)	/ 2 )
=	596.4453	/	4883.9825
=	12.21 %

where

	Invested Capital		(Q: Mar. 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	))
=	6063.925	-	1120.048	-	( 2.389	-	max(0, 2252.371	-	3386.473	+	2.389	))
=	4941.488

	Invested Capital		(Q: Sep. 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	))
=	5549.892	-	688.726	-	( 34.689	-	max(0, 1528.89	-	2904.06	+	34.689	))
=	4826.477

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

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

RFG Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	821.1	/	( ( (2021.836 + max(2180.253, 0))	+	(2012.565 + max(1724.841, 0)) )	/	2 )
=	821.1	/	( ( 4202.089	+	3737.406 )	/	2 )
=	821.1	/	3969.7475
=	20.68 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1216.823	+	2155.989	+	0)	-	(1120.048	+	0	+	72.511)
=	2180.253

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1120.506	+	1697.312	+	36.426)	-	(688.726	+	0	+	440.677)
=	1724.841

When net working capital is negative, 0 is used.

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

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

RFG Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	410.775	/	4108.244
	=	10.00 %

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.

RFG Holdings Operating Income Related Terms

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RFG Holdings (JSE:RFG) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

Pniel Road, Groot Drakenstein, Cape Town, WC, ZAF, 7680

Website

https://www.rfg.com

RFG Holdings Ltd is a South Africa based company engaged in supplying fresh, frozen, and convenience meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include, Regional which is the key revenue generating segment, and International.