The board of South Africa's RCL Foods has approved the separate listing of its poultry unit on the Johannesburg Stock Exchange (JSE), Reuters reported, citing the company on Tuesday.

RCL, whose brands include Selati sugar, Ouma rusks and Yum Yum peanut butter, says it is restructuring its portfolio to deliver sustainable earnings. The chicken business is one of the biggestpoultry producers in South Africa, processing 4.1 million chickens a week.

The separation of Rainbow Chicken Limited, announced in March, will be carried out by distributing shares to RCL shareholders on a one-for-one basis. The new entity will be listed on the JSE on June 29, RCL said in a statement.

Rainbow’s revenue increased 11% to 7.29 billion rand ($391.97 million) in the six months to December 2023. Its underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 365% to 287 million rand due to a better agricultural performance, improved volumes and margins, and sound cost control.

($1 = 18.5982 rand)