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Unaudited results for the six months ended 30 September 2025, interim cash dividend and general share repurchase
PREMIER GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/016008/06)
JSE share code: PMR
ISIN: ZAE000320321
("Premier", the "Group" or the "Company")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025, INTERIM CASH DIVIDEND
AND GENERAL SHARE REPURCHASE
FINANCIAL OVERVIEW
- Revenue increased by 6.4% to R10.3 billion
- EBITDA1 increased by 13.6% to R1.3 billion
- Operating profit increased by 17.0% to R1.1 billion
- Earnings per share ("EPS") increased by 27.4% to 558 cents per share
- Headline earnings per share ("HEPS") increased by 27.9% to 560 cents per share
- Interim cash dividend declared of 159 cents per share
1. Earnings before finance income and costs, foreign exchange losses on cash,
share of net profit in equity-accounted investments, tax, depreciation and
amortisation.
COMMENTARY ON PERFORMANCE
Premier's interim results for the six months ended 30 September 2025 demonstrate
the continuance of a successful business model and strategy. Sustained capital
investment across our diverse asset base, focused on manufacturing excellence, the
development of our people and ensuring a highly efficient logistics and
distribution channel, continued to deliver tangible growth. As anticipated,
moderate revenue growth was realised against deflation in global grain prices,
including maize and rice.
Revenue growth was effectively converted into a notable uplift in operational
earnings through further improvements in efficiencies, consistent daily service
delivery and the companywide pursuit of excellence.
On 16 October, Premier announced its firm intention to acquire RFG Holdings Limited
("RFG"). The transaction will be effected by means of a share swap that will result
in RFG shareholders owning approximately 22.5% of the enlarged Premier Group.
Please refer to the Firm Intention Announcement on our website for more details in
respect of the proposed transaction at www.premierfmcg.com/investors/sens ("RFG
transaction").
The Group's revenue increased by 6.4% to R10.3 billion. The Millbake division,
which comprises 83% of revenue, was the main driver of growth with an increase in
revenue of 6.0%. The Groceries and International division grew revenue by 8.1%.
EBITDA increased by 13.6% to R1.3 billion. Growth in Millbake EBITDA of 12.4% was a
key contributor to the Group's performance, augmented by robust growth in the
Groceries and International EBITDA of 13.8%. The Group's EBITDA margin improved by
80 basis points to 12.7%.
Operating profit increased by 17.0% to R1.1 billion and the operating profit margin
improved by 100 basis points to 10.7%.
Net finance costs decreased by 28.7% to R119 million, a benefit of reduced debt
levels. The Group's share of net profit in equity-accounted investments was R16
million.
EPS increased by 27.4% to 557.9 cents and HEPS increased by 27.9% to 559.5 cents.
Cash generated from operations increased by 34.7% to R1.3 billion, driven by the
growth in the Group's EBITDA and improved working capital management, with an outflow
of R70 million compared to R240 million in the prior period.
The Group's net debt (including lease liabilities but excluding the trade financing
facility) on 30 September 2025 was R1.8 billion, representing a Group leverage ratio
of 0.7x (H1 2025: 1.0x) on the LTM EBITDA of R2.5 billion.
MILLBAKE
The Millbake division once again delivered an excellent set of results while
continuing to navigate adverse economic conditions. As anticipated, revenue growth
was moderate at 6.0%, increasing revenue to R8.6 billion. EBITDA, boosted by ongoing
operational efficiency improvements, increased by 12.4% to R1.3 billion and
simultaneously improving the EBITDA margin by 80 basis points to 14.7%. Millbake's
revenue growth is attributable to price/mix growth of 2% and volume growth of 4%,
showcasing the growing strength of the brands.
After much anticipation, the commissioning of Phase 1 of the Aeroton mega-bakery
project is on track for mid-November 2025; and Phase 2 for February 2026. This
significant undertaking is expected to meaningfully enhance efficiencies and
economies of scale and to fundamentally improve the quality of the bread Premier
offers to its consumers in the inland region. In addition, the speed and performance
of the new lines will alleviate substantial capacity pressure in the region.
GROCERIES AND INTERNATIONAL
The Groceries and International division delivered a good performance for the six
months ended 30 September 2025. The division's revenue increased by 8.1% to R1.8
billion and EBITDA increased by 13.8% to R119 million. The EBITDA margin improved to
6.8% from 6.4%.
The Home and Personal Care division posted a good performance. The primary focus
areas for the period included bedding down several strategic projects and the
streamlining of the pads and liners operations through investment in capacity and
capability. The newly installed tampon manufacturing and packing machinery has
supplemented our current capacity, delivering good efficiencies and, coupled with
the new liner machinery commissioned in September 2025, has enhanced local
manufacturing for exports.
The Sugar Confectionery division delivered a solid set of results. We have seen an
uptick in volumes attributable to new business and improved service levels post the
challenges experienced in the prior year. We are excited by the progress that we've
achieved in onboarding the additional branded products for the prestigious Woolworths
range. The liquorice line is up and running and well placed to bring further
innovation and efficiencies.
Notwithstanding significant macro-economic headwinds in Mozambique, the CIM business
experienced an improvement in trading conditions during the period, producing
pleasing results. The diverse product and brand portfolio that CIM offers remains
defensive, with a particularly strong performance in bread, rice and porridge. While
foreign currency supplies in the country remain low, the Premier management team
continued to actively engage with commercial banks to manage Premier's foreign
exchange exposure.
INTERIM CASH DIVIDEND DECLARATION
Premier is pleased to announce that a once-off, interim dividend of 159 cents per
share has been declared out of the Company's reserves, in respect of both the ordinary
shares of no-par value and the unlisted "A" and "A1" ordinary shares of no-par value,
for the period ended 30 September 2025. The interim dividend is as a result of the
proposed RFG transaction and, in line with Premier's dividend payout policy of 30%
of diluted HEPS, any final dividend for the year ending 31 March 2026 will be reduced
by the once-off interim dividend of 159 cents per share.
A dividend withholding tax of 20% (or 31.80000 cents per share) will be applicable,
resulting in a net dividend of 127.20000 cents per share, unless the shareholder
concerned is exempt.
The salient dates relating to the payment of the dividend are as follows:
2026
Last day to trade in order to participate in the dividend Tuesday, 20 January
First day to trade ex-dividend Wednesday, 21 January
Record date Friday, 23 January
Payment date Monday, 26 January
Share certificates may not be dematerialised or rematerialised between Wednesday, 21
January 2026 and Friday, 23 January 2026, both days inclusive.
In terms of the Company's Memorandum of Incorporation, dividends will only be
transferred electronically to the bank accounts of shareholders. In the instance
where shareholders do not provide the Transfer Secretaries with their banking
details, the dividend will not be forfeited but will be marked as 'unclaimed' in the
share register until the shareholder provides the Transfer Secretaries with the
relevant banking details for payout.
GENERAL SHARE REPURCHASE PROGRAMME
Premier intends to commence a general share repurchase programme in terms of the
general authority granted to it by shareholders at the Annual General Meeting held
on 3 September 2025. The rationale for the share repurchase is to ensure that the
Group's capital structure remains efficiently structured, before any effects of
implementation of the RFG transaction, and is primarily a response to the strong
free cashflow generation of the Group over the prior financial periods. Premier
intends to repurchase shares at up to R154 per share, being the reference price of
the RFG transaction.
OUTLOOK
Looking ahead, management will focus on maintaining the momentum achieved in the
first half of the year, continuing to build scale in our operations and realising
maximum throughput with high levels of operational efficiency. After 3 years of
patiently waiting for the completion of the new Aeroton bakery, its benefits will
start to flow through in the second half of the year. Together with the numerous
other capital programmes across the business, the efficiency and scale of our
substantial infrastructure investments are expected to yield benefits progressively
over the coming years. We will also continue our strategic focus on human capital
development, providing the leadership and execution capability required to leverage
our facilities, bring them to life and unlock long-term growth.
We look forward to the approval and implementation of the RFG transaction before the
end of this financial year. RFG's portfolio of branded and private label food products
will broaden Premier's food basket and open up further opportunities to enhance
efficiencies through business integration over the coming years.
Working closely with municipalities, particularly in smaller towns, to support
operational continuity, as well as building constructive relationships and open
dialogue with key individuals in government, remains vital to the success of our
business. Further to that, our social impact continues to be focal to our purpose
and we will strive to execute on the meaningful projects and programmes that we have
put in place countrywide to uplift people who need it most.
We remain committed to quality, execution and capability building, with a clear plan
in place to deliver against our growth ambitions for the full FY2026 year. We remain
confident in our ability to maintain our growth path.
ABOUT THIS ANNOUNCEMENT
The contents of this results announcement are the responsibility of the directors of
the Company and have not been reviewed or audited by the Group's auditor. Any forecast
financial information or reference to future performance contained in this
announcement has not been reviewed or reported on by the Group's auditor.
This announcement is a summary of information in the full unaudited interim results
for the six months ended 30 September 2025 ("interim results") and does not contain
full or complete details. Any investment decisions by investors and/or
shareholders should be based on the full interim results. The full interim results
are available on the JSE's cloudlink at
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/PMRE/20251111.pdf
and published on the Company's website,
https://www.premierfmcg.com/investors/results-reports
on 11 November 2025.
Non-executive directors
I van Heerden (Chairman), JER Matthews, PRN Hayward-Butt (Alternate Director to JER
Matthews)
Independent non-executive directors
FN Khanyile (Lead Independent), DD Ferreira, H Ramsumer and W Sihlobo
Executive directors
JJ Gertenbach (Chief Executive Officer), F Grobbelaar (Chief Financial Officer)
Company Secretary: B Baker
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
11 November 2025
Date: 11-11-2025 07:05:00
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