Manzini Scoops R250 Million Loan from the Public Investment Corporation

Johannesburg, 20 September 2024: Daybreak Foods CEO Richard Manzini has successfully secured a ZAR 250 million (USD 13 million) corporate loan from the Public Investment Corporation SOC Limited (PIC), marking a crucial turning point for the poultry company.

“It has not been an easy road for any of us at Daybreak,” commented Manzini. “However, the confidence shown through the approval of this loan means we can ready the business for a working capital reset and position for growth.”

Since taking on the role of CEO in 2023, Manzini, along with his newly appointed executive team, has focused on stabilising the then-struggling Daybreak Foods Pty Ltd and optimising its operations and financial standing.

The loan, approved by the PIC's sanctioning committee on 18 September 2024, will be directed toward key upgrades. The funding will support technology improvements at Daybreak’s abattoirs, the installation of a water treatment plant, and the enhancement of the chicken processing systems. These upgrades are critical as the company works towards becoming the leading poultry producer in South Africa.

Despite the poultry industry's challenges in 2023, Daybreak Farms is now tracking towards profitability, in line with industry margins. The company's success stems from its strengthened corporate governance and stringent cash management, particularly during the Avian Flu Pandemic, when the company opted not to rely on external financial support or revolving facilities.

“We are committed to addressing past challenges, fostering integrity, and enhancing efficiency within the organisation. We have made massive strides in key areas, including governance reforms, procurement, and financial management,” said Manzini. “This loan is evidence of the due diligence outcomes.”

The PIC’s financial support will bolster Daybreak Foods' capital investment plans, particularly in stabilising and improving energy efficiency and infrastructure. This, combined with the company's ongoing restructuring efforts, positions Daybreak for potential further investment as part of its broader 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 this for the long haul. 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,” Manzini added.

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