Manzini Scoops R250 Million Loan From the Public Investment Corporation:
Johannesburg, 20 September 2024: The decision to take a hard stance and regain financial control has paid dividends for Daybreak Foods’ CEO, Richard Manzini, as he welcomes the Public Investment Corporation SOC Limited’s (PIC) approval of a ZAR 250 million ($ 13 million) corporate loan.
“It has not been an easy road for any of us at Daybreak,” comments Manzini, “however the confidence that has been shown in the approval of this loan means we can ready the business for a working capital reset and position for a growth path.”
After taking on the role as CEO of Daybreak Foods Pty Ltd in 2023, Manzini and his newly appointed C-suite team embarked on a journey to stabilise the then ailing poultry company, and further optimise its operations and balance sheet.
The loan approved by the PIC’s sanctioning committee on Wednesday, 18 September 2024 will be for this purpose. In the main, the money will be spent on technology upgrades of Daybreak’s abattoirs and machines, a water treatment plant, and increasing the speed of the chicken processing systems. Very necessary upgrades as the Daybreak team works towards becoming the leading poultry producer in South Africa.
Despite the challenges the poultry industry faced in 2023, Daybreak Farms is now tracking in accordance to industry margins towards profitability. The fundamental reason is that the company has ensured the strengthening of corporate governance.
One of the challenges that the team has had to manage is that of the Avian Flu Pandemic, and during this time, the company opted to manage their cash much more stringently without access to a revolving facility or support from the shareholders. This decision has lent credence to the fundamental stacking of the business, the cost efficiencies realised and the treasury management.
“The company is committed to addressing past challenges, fostering integrity, and enhancing efficiency within the organisation. We have made massive strides in key areas including reforms in governance, procurement and financial management – this loan is evidence of the due diligence outcomes” – adds Manzini
Following the approval, Manzini emphasised the significance of the support of the PIC’s financial backing: “We appreciate the support demonstrated by the PIC; the loan extended will make a significant contribution to Daybreak Foods’ capital investment plan to stabilise and improve energy efficiency efforts and infrastructure initiatives.”
This financial deal, coupled with the restructuring of the company and its balance sheet, could result in an additional investment to expand Daybreak’s strategic direction as a protein foods business.
“This loan is the culmination of months of hard work, of not giving in to quick fixes and of realising that we are in for the long haul – which is precisely where we want to be if we want to change our position in the pecking order,” says Manzini. “And now we are well on our way to achieving our mission: to get Daybreak, which employs 3 400 people, back to a strong market position, where it deserves to play.”
Video: Manzini scoops R250million loan from the Public Investment Corporation
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