Make Jam and Cream, Even In Tough Times, Like RFG.

You might be an executive who is finding growth really tough to come by. There are certainly many tales of this struggle that can be found around every corner. Here is a view described as brutally honest by the Daily Investor; it comes from Italtile, a well-known company that shows its growth capabilities abroad but has this to say about its struggles at home:

This is not limited to well-known listed companies. Depending on which industry sector you’re in, this might be a sector-wide story. Consider this recent report from the agriculture industry:

In the midst of such hardship and how pervasive negative news seems to be, it is important not to lose sight of the insights to be obtained from those who are experiencing something different.

This is the very pleasant tale coming out of Groot Drakenstein, where Rhodes Food Group has their headquarters:

A sustained and steep trend that means that, at this rate, RFG is on course to double its revenue every seven years.

?For those wondering about the quality of this revenue growth, the following graph sheds some light. It turns out that over the same period, the operating profit has increased at twice the rate of the impressive revenue growth number.

There is a secret to this number that is pertinent, though, and it is revealed in the following graph:

The difference in the regional and international operating profit here is crucial to this pleasing tale.

For the people chasing dividend yield, the story could scarcely be better. At this rate, if sustained, the dividend will continue to double every three and a half years.

But is this luck? Is there some secret muthi on the road between Stellenbosch and Franschhoek, or is this just a case of every dog has its day?

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At The OMG, we believe that this is a case of focusing on what is causal to success, and the numbers we see out of RFG are buoyed by placing its activities in the centre of one of the most reliable ways to cause growth. Talented and intelligent as this management team is, there seems to be no evidence that they are head and shoulders above other eminent executive teams that are confronted by lesser outcomes. We believe that this is yet another indication in literally thousands that for companies that sell products, their very best bet is to make them more complex, in other words, add value to them, and then export them.

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What you see in this RFG story - the resilience, the growth, and manifold admirable traits - is how the international export part complements the manufacturing of complex products. Makers of complex products can be found in any market, but without the dimension of international export, do not show the same characteristics as RFG if times are tough in its domestic market, which seems to be the case, certainly in South Africa.

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Our encouragement in sharing this story is to remind you that, you too could be in the same position as RFG by embracing the manufacture of complex products and exporting them. It is important too to note that even just the suggestion to your executive team may attract resistance, and even if there is wholehearted agreement, new obstacles and challenges are bound to present themselves.

For this eventuality, we present our proprietary "Uncommon Sense" toolset, designed to address your most pressing challenges and unlock the greatest opportunities. It’s a collection of capital-light tools crafted to guide executives towards the type of high-quality growth Rhodes Food Group has become synonymous with.

In a landscape where challenges are as towering as the opportunities, our Uncommon Sense approach is not just a nice-to-have; it's a necessity. It's the bridge that connects the current struggles with the potential heights of prosperity and sustainability, mirroring the success at RFG. This is an invitation to embark on a journey of transformation, leveraging the lessons from this stellar jam and cream maker and thousands of companies just like it, to script a new chapter of growth and success.

Join us!