Premier Group (PMR) H1 2026 earnings summary

Executive summary

• Revenue increased 6.4% year-over-year to R10.3 billion, with EBITDA up 14% and net profit up 27.4%, driven by operational efficiencies and asset investments.

• The Millbake division, contributing 83% of revenue, delivered moderate revenue growth and significant EBITDA margin improvement; Groceries and International posted robust gains.

• A firm intention to acquire 100% of RFG Holdings Limited via share swap was announced, expected to close before March 2026, adding nearly R8 billion in revenue and R1.1 billion in EBITDA.

• Market share remains strong: 27% in bread, 41% in wheat, 15% in maize, and 21% in SA femcare.

• Interim dividend of 159 cents per share declared, with a share buyback program up to R154 per share to be launched.

Financial highlights

• Revenue: R10.3 billion, up 6.4% year-over-year; EBITDA: R1.3 billion, up 14%; EBITDA margin at 12.7%.

• Net profit: R719 million, up 27.4%; net profit margin at 7.0%.

• EPS: 558 cents, up 27.4%; HEPS: 560 cents, up 28%.

• Cash from operations: R1.3 billion, up 35%; free cash flow conversion at 70%.

• Operating profit: R1.1 billion, up 17%; operating margin improved to 10.7%.

Outlook and guidance

• Management targets double-digit profit growth and 15%-20% long-term EPS growth.

• RFG acquisition expected to deliver cost synergies, procurement efficiencies, and long-term growth, making the group the second-largest food producer on the JSE.

• Aeroton mega-bakery project Phase 1 on track for mid-November 2025, Phase 2 in February 2026.

• No forward EBIT margin guidance, but margin expansion expected through operational efficiencies and consolidation.

• Continued focus on human capital development and social impact initiatives.