Wrap Text
Group Financial Results for the year ended 31 March 2026 and Cash Dividend Declaration
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")
GROUP FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2026 AND CASH DIVIDEND DECLARATION
FINANCIAL OVERVIEW
- Revenue increased by 6.6% to R21.2 billion
- EBITDA(1) increased by 18.2% to R2.8 billion
- Operating profit increased by 23.2% to R2.4 billion
- Earnings per share ("EPS") increased by 27.4% to 1 192 cents per share
- Headline earnings per share ("HEPS") increased by 27.7% to 1 204 cents per share
1. Earnings before finance income and finance costs, foreign exchange losses on
cash, share of net profit in equity-accounted investments, tax, depreciation
and amortisation
COMMENTARY ON PERFORMANCE
Premier's performance during this transformational year reflects the strength and
continuity of our commitment to our defined business strategy. Investment in our
infrastructure is translating into measurable benefits supported by our core
principles which include a relentless focus on quality, service delivery and agile
execution. Notwithstanding the deflationary global dynamics in commodity prices,
mid-single digit revenue growth was realised through underlying volume growth in our
core business and substantial uplift in operational earnings was achieved.
Significant deflation in maize input prices, from the previously elevated levels in
FY2025, was experienced during the year with the white maize spot price declining
31% since March 2025. This has boosted sales volumes in the maize category with
price savings being passed on to alleviate the cost burden of feeding a family. The
deflationary cycle in rice prices during the 2025 calendar year impacted Premier's
associate (Goldkeys) business, however a pleasing volume performance has been
experienced as global rice prices stabilise. Price point management and disciplined
procurement remained the focus to drive volumes at sustainable margins across the
business.
The acquisition of RFG Holdings Limited ("RFG") in March 2026 represents a defining
milestone in Premier's rich history. The acquisition was completed at a value of
R6.5 billion, as the Premier share price increased 12% from the reference price of
R154.00 per share at announcement to R172.78 at implementation, and the consideration
was primarily settled by the issue of new Premier shares on a 7:1 share swap basis.
The acquisition has added a broad, complementary collection of leading brands to the
Premier stable, supplemented by an extensive private label product range.
The commissioning of the Aeroton bakery during the second half of the year is expected
to meaningfully contribute to economies of scale and introduce further efficiencies
into the bread manufacturing and distribution process. Both lines were operational
by March 2026, and volumes are steadily ramping up towards full capacity, which will
enable the decommissioning of old bakeries and improve bread availability in key
inland markets.
The Group's revenue increased by 6.6% to R21.2 billion primarily driven by 5.1%
revenue growth in the Millbake division, which comprises 81% of revenue. Revenue in
the Groceries and International division increased by 13.5%, assisted by the
contribution of RFG's financial results from 11 March 2026, the effective date of
the acquisition.
EBITDA increased by 18.2% to R2.8 billion. Growth in Millbake EBITDA remained a key
contributor to the Group's performance growing by 18.3% to R2.7 billion and was
supplemented by growth in the Groceries and International EBITDA of 29.6% to R302
million. The Group's EBITDA margin improved by 130 basis points to 13.1%, compared
to the prior year margin of 11.8%.
Operating profit increased by 23.2% to R2.4 billion and the operating profit margin
improved by 150 basis points to 11.1%.
Net finance costs decreased by 27.5% to R221 million, a benefit of reduced debt
levels. The Group's share of net profit in equity-accounted investments was R29
million.
EPS increased by 27.4% to 1 192 cents and HEPS increased by 27.7% to 1 204 cents.
The inclusion of RFG's results from the effective date had no effect on EPS and the
net effect of adding 3 cents to HEPS.
Cash generated from operations improved by 39.5% to R3.3 billion, enabled by growth
in EBITDA and supported by disciplined working capital management, with an inflow of
R452 million in working capital compared to an outflow of R44 million in the prior
year.
Key cash outflows during the year comprised of capital expenditure of R1.0 billion,
R322 million on the share repurchase scheme and voluntary debt repayments of R429
million.
The Group's net debt (including lease liabilities but excluding the trade financing
facility) and including RFG's net debt at 31 March 2026 was R2.2 billion. The leverage
ratio was 0.8x. On a stand-alone basis (excluding RFG) the net debt was R1.3 billion,
which represents a leverage ratio of 0.5x (2025: 0.7x), a level that continues to
trend down compared to historical levels.
MILLBAKE
The Millbake division maintained its growth trajectory delivering an exceptional set
of results. Moderate revenue growth of 5.1% was achieved, increasing revenue to R17.3
billion. EBITDA increased by 18.3% to R2.7 billion. The EBITDA margin was 15.5%, an
improvement of 180 basis points compared to last year. The increase in revenue is
attributable to volume growth of 5%, with price / mix growth being flat for the year.
The growth in EBITDA reflects the strong execution across the business, with tight
cost management and a high demand for Premier's products. Premier's persistent focus
on bread quality, consistency and investment in bakery capability and efficiencies
continues to pay dividends.
Maize volumes showed impressive growth over the prior year, with maize pricing
reflective of the healthy supply.
GROCERIES AND INTERNATIONAL
Revenue in the Groceries and International division increased by 13.5% to R3.9
billion and EBITDA increased by 29.6% to R302 million. The EBITDA margin increased
by 100 bps to 7.7% from 6.7% in the prior year.
The trading environment in the Personal Care category proved to be tough for the
full year, but the investment in manufacturing operations continued to deliver
operational efficiencies in support of our growth strategy. The South African
business delivered year-on-year growth in new channels and key product segments
despite challenges in the core retail channel. The UK business experienced a
challenging year as the core tampon product segment continued to show a decline, due
to changes in consumer usage. New business launches outside the core tampon offering
produced pleasing results with ongoing growth on Amazon and in export markets. Our
international business was affected by the conflict that has broken out in the Middle
East which has been ongoing since 28 February 2026.
The positive momentum in Sugar Confectionery experienced in the first half of FY2026
was maintained through to year-end. Consistent volume growth was enabled by improved
service levels and site efficiencies as the benefits from our investments in the new
liquorice line and site consolidations begin to materialise. Trading was boosted by
a buoyant Easter 2026 period as well as additional products onboarded with Woolworths,
including liquorice and the chocolate product range. Focus remains on maximising the
benefits from our investment in the business and pursuing opportunities through
innovation.
Extremely challenging macroeconomic conditions in Mozambique continued to assert
pressure on disposable income and forex availability, with added regulatory
complications. CIM's volume and margin performance continued to take strain, with an
almost negligible profit contribution at a Group level.
CASH DIVIDEND DECLARATION
Premier is pleased to announce that, in line with its policy of paying out 30% of
diluted headline earnings per share, a final gross dividend of 182 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,
bringing the total dividend to 341 cents per share for the year ended 31 March
2026(2025: 271 cents per share). Notwithstanding the interim dividend paid to
shareholders on 26 January 2026 as result of the RFG acquisition, it remains Premier's
policy to pay a final dividend each year after the release of its year end results.
Cash flows over FY2026 remained ahead of expectations and the Company has shown
strong deleveraging of the balance sheet ahead of initial guidance. Premier continues
to maintain appropriate cash reserves to execute on committed capital requirements,
as well as to retain flexibility to assess organic and inorganic growth opportunities.
Furthermore, the Board is satisfied that the Company is solvent and liquid, and that
it has sufficient capital and reserves after the payment of the final dividend, to
support its operations for the foreseeable future.
A dividend withholding tax of 20% (or 36.40000 cents per share) will be applicable,
resulting in a net dividend of 145.60000 cents per share, unless the shareholder
concerned is exempt from paying dividend withholding tax or is entitled to
a reduced rate in terms of an applicable double-tax agreement.
The Company's tax reference number is 9102629160.
The Company's issued share capital is comprised of 166 443 231 no-par value ordinary
shares, 15 457 unlisted "A" ordinary shares and 23 060 unlisted "A1" ordinary shares.
The salient dates relating to the payment of the dividend are as follows:
Last day to trade in order to participate in the dividend Tuesday, 21 July 2026
First day to trade ex-dividend Wednesday, 22 July 2026
Record date Friday, 24 July 2026
Payment date Monday, 27 July 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 22
July 2026 and Friday, 24 July 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.
OUTLOOK
A new combined Premier enters FY2027 with the primary focus of completing the RFG
integration and unlocking the merger synergies. At the EBITDA level the Groceries
division, which now houses Culinary, is expected to comprise around one third of
the business with Millbake accounting for two thirds. The post-acquisition
integration is well underway, and we remain confident of delivering the expected
cost savings and synergies. Consolidation of key suppliers, cost reductions from
increased scale and integration of operational and support functions is expected to
be materially completed by the end of FY2027.
The increase in fuel, packaging and other fuel related input costs is likely to
necessitate price increases across the portfolio of c.5%. The deflationary global
soft commodity price cycle appears to have bottomed out with the forecasted Super El
Nino predicted to impact grain supply and prices negatively. Although the ongoing
tariff uncertainty will impact Culinary's International sales, the current 10/12.5%
vs the prior 30% US Tariff rate is likely to provide a more favourable trading
environment during the key marketing season than in the previous year. The
inflationary conditions are further expected to increase the cost of capital and
maintain our focus to continue debt reduction in the business to support sustained
EPS growth.
The commissioning of the Aeroton bakery will alleviate bread capacity constraints in
the inland region and, along with the investments in Sugar Confectionery and Personal
Care sites, will further enhance efficiencies in the business and improve service
delivery in the Groceries division. The Aeroton bakery will replace the capacity of
three small-scale, older generation bakeries in the region, the first of which
(Hermanstad) was mothballed from April 2026. As these and several other capital
projects mature, their collective benefits are anticipated to be realised in the
years ahead. The Board and management will remain disciplined in the further
allocation of capital, and there are a number of value enhancing projects across the
business that are underway.
Alongside these exciting commercial developments, Premier remains committed to
ensuring our activities are fundamentally a force for good and we will continue
investing in our established CSI initiatives, delivering meaningful support, growing
brand loyalty and making a difference in the everyday lives of our consumers.
We look forward to the next chapter in Premier's two centuries' long history, together
with the Culinary team, building an even better business and continuing to deliver
sustainable returns to our shareholders, old and new.
Any forward-looking information contained in this announcement has not been reviewed
or reported on by the Group's auditors.
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. This short
form announcement and the results contained in this short form announcement have
been prepared in compliance with the Listings Requirements of the JSE Limited.
This announcement is a summary of information in the audited consolidated annual
financial statements for the year ended 31 March 2026 ('results') and does not
contain full or complete details. Any investment decisions by investors and/or
shareholders should be based on the results. The results and the summary consolidated
annual financial statements are available on the JSE's cloudlink at
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/PMRE/20260617.pdf
and published on the Company's website,
https://www.premierfmcg.com/investors/results-reports
on 17 June 2026.
PricewaterhouseCoopers Inc., the Group's independent auditor, has audited the
consolidated annual financial statements of the Group from which this announcement
has been derived and has expressed an unqualified audit opinion on the consolidated
annual financial statements.
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
Investec Bank Limited
17 June 2026
Date: 17-06-2026 07:05:00
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