Premier Group (PMR) H1 2025 earnings summary

Executive summary

• Achieved strong operational earnings growth for the six months ended 30 September 2024, driven by infrastructure investment, efficiency improvements, and margin management.

• Revenue grew 3.7% to R9.7 billion, with EBITDA up 13.5% to R1.2 billion, and net profit up 33% to R565 million.

• Maintained robust market positions in bread, wheat, maize, sugar confectionery, and home/personal care segments.

• Included in the FTSE/JSE All Share Index in September 2024 following increased share liquidity.

• Acquisition of a 30% stake in Goldkeys International, a rice distributor, completed in June 2024.

Financial highlights

• Revenue rose 4% year-over-year to R9.7bn; EBITDA up 14% to R1.2bn with margin at 11.9%.

• Operating profit increased 17% to R945m; net profit up 33% to R565m, with net margin at 5.8%.

• EPS and HEPS both grew over 30% to 438cps; cash generated from operations up 14% to R944m.

• ROIC improved to 22.7% and ROE to 31.9%; group leverage ratio reduced to 1.0x.

• Maiden dividend of R287 million paid for FY2024; free cash flow conversion at 97%.

Outlook and guidance

• Expect improved local white maize harvest in 2025, but anticipate volatility in global wheat and maize prices.

• Aeroton bakery project on track for H2 2026 completion; further operational improvements in sugar confectionery pipeline.

• Focus remains on capitalising on operational efficiencies and leveraging facilities for growth.

• Board intends to declare a full-year dividend in line with the 30–60% payout policy.

• Continued investment in people and collaboration with government to ensure operational continuity.