Wrap Text
Unaudited Results for the six months ended 30 September 2026
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 2026
FINANCIAL OVERVIEW
- Revenue increased by 38.8% to R14.3 billion
- EBITDA(1) increased by 51.4% to R2.0 billion
- Operating profit increased by 52.5% to R1.7 billion
- Earnings per share (“EPS”) increased by 27.5% to 711 cents per share
- Headline earnings per share (“HEPS”) increased by 27.1% to 711 cents per share
- Leverage of 0.7x, in line with pre-acquisition levels, and R207 million returned
to shareholders through share repurchases
- Millbake EBITDA up 23.7%
- Merger synergies on track
Notes
(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 has delivered a strong set of results for the six months ended 30 September
2026, the first half-year period to include the results of RFG Holdings Limited
(“RFG”), acquired in March 2026 (the “RFG Transaction”), now operating as the
Premier Culinary business (“Culinary”) within the Groceries division. Our
disciplined execution of Premier’s strategy has been instrumental in supporting the
transition, while our sustained investment in infrastructure across our businesses
continues to deliver improved efficiencies and reinforces our position as a low-
cost producer of quality products.
The integration of Culinary is progressing to plan. Merger-related synergies are
being realised, notably in merchandising, distribution, procurement, sales and
system alignment, and further benefits are expected over the next six months. Low
revenue growth in the core business was mostly due to continued raw material
deflation. Overall, the business delivered a significant uplift in operational
earnings, with focus remaining on operational efficiency, innovation and optimising
the logistics platform.
Premier decided not to re-open the fruit processing site in Tulbagh in the Western
Cape. Following the approval of the merger, the export prospects of the global
canned fruit market declined rapidly, rendering the manufacturing facility
economically unviable.
Premier continues to engage constructively with the Competition Commission to resolve
the concerns raised by the Commission. Premier remains optimistic that the case
will be settled amicably in the best interests of all concerned. Premier provided
generous support to the employees and the fruit producers, continues to seek
alternative business opportunities to repurpose the facility, and are looking at
various initiatives to support the local Tulbagh community.
A new bakery was commissioned in Middelburg in September, improving efficiencies
and further contributing to the growth of the key inland markets. The new Aeroton
bakery commissioned earlier in the year reached full-scale production and is
performing in line with expectations.
The Group’s revenue increased by 38.8% to R14.3 billion, primarily driven by the
inclusion of Culinary. The Millbake division, which comprises 66% of Group
revenue, grew revenue by 1.3%, with maize and wheat deflation of 20% and 5%
respectively.
EBITDA increased by 51.4% to R2.0 billion. The strong earnings performance of
Millbake, with EBITDA growth of 23.7%, remained a key contributor to the Group’s
profitability. This was supplemented by growth in Groceries’ EBITDA with the
inclusion of Culinary. The Group’s EBITDA margin improved by 120 basis points to
13.9%.
Operating profit increased by 52.5% to R1.7 billion and the operating profit margin
improved by 110 basis points to 11.8%.
Net finance costs increased by 17.1% to R139 million following the inclusion of debt
assumed in the RFG Transaction. The Group’s share of net profit in equity-accounted
investments increased by 46.5% to R23 million.
EPS increased by 27.5% to 711.1 cents and HEPS increased by 27.1% to 711.1 cents,
including the effect of the net increase in the weighted average shares in issue of
35 075 010 shares, due to the issuance of shares in the RFG Transaction and the
repurchase of shares.
During July 2026, Premier repurchased a further 1 130 612 shares, representing
approximately 0.88% of the Company’s issued share capital as at the date of the
General Authority, for an aggregate consideration of approximately R207 million.
Cash generated from operations improved by 43.0% to R1.8 billion, enabled by growth
in EBITDA and supplemented by the inclusion of Culinary. R179 million in working
capital was absorbed during the period compared with R70 million in the prior period.
The Group’s net debt (including lease liabilities but excluding the trade financing
facility) as at 30 September 2026 was R2.3 billion, representing a Group leverage
ratio of 0.7x, which is in line with the pre-acquisition leverage ratio in the prior
period, notwithstanding the debt assumed in the RFG Transaction.
Return on invested capital (“ROIC”) improved by 300 basis points from 17.6% at year-
end (following the RFG Transaction) to 20.6%.
MILLBAKE
The Millbake division continued to perform well on the back of sustained investment
in the business. The results for the Millbake and Groceries divisions in the
comparative periods have been restated due to the reallocation of CIM, the Group’s
subsidiary in Mozambique, from Groceries to Millbake. Millbake revenue growth of
1.3% was achieved, increasing revenue to R9.4 billion while EBITDA increased by 23.7%
to R1.6 billion. The EBITDA margin improved by 300 basis points to 16.8% compared to
the prior period. The increase in revenue was attributable to volume growth of 1%,
with price/mix flat for the period.
Focus remained on protecting margins through disciplined cost management,
strengthening route-to-market execution, and continuing to build the capability and
leadership pipeline required to sustain future growth. A key priority was to maximise
the benefits of the new bakeries to deliver the respective investment cases.
Continued investment in CIM’s manufacturing capability, which now forms part of
Millbake, started to deliver improved operational performance in the last quarter.
The momentum is expected to continue, supported by the roll-out of the Rhodes brand
portfolio in Mozambique and further planned manufacturing enhancements.
GROCERIES
The Groceries division’s revenue increased significantly to R4.9 billion with the
inclusion of Culinary. EBITDA increased to R513 million with the EBITDA margin
increasing by 60 basis points from 9.8% in the prior period to 10.4%.
In the Culinary category, Fresh products continued to perform well, driven by new
opportunities to offer a broader basket within Pies & Pastries. Maintaining a strong
focus on innovation is key to the business, with a strong pipeline of new products
planned for the Woolworths portfolio. Long Life products delivered a good performance
overall for the six months despite the implosion of the Tulbagh International
business.
Cross-functional synergies are expected to accrue across the business, including the
transition to Premier’s merchandising platform, continued supply chain integration,
and procurement related savings.
The operating environment in the Personal Care business remained challenging with
subdued trading in formal retail channels across the Femcare category as consumers
face increased financial pressure and retailers continue to drive low-priced own-
label pad offerings. The new pads, liners and tampon production lines continue to
improve efficiencies and scale, reducing costs and improving margins. The UK business
delivered a strong performance with growth outside of the core tampon range continuing
to offset the structural decline in tampon sales.
The Sugar Confectionery business underperformed during the period, and remedial
actions have been implemented to improve the performance. Focus remains on restoring
volume, improving operational efficiencies, service levels and building deeper
customer partnerships.
OUTLOOK
Merger-related benefits, through operational integration and supply chain synergies,
are expected to increase in the second half of the year with growth opportunities
being unlocked through the delivery of a unified portfolio.
Premier remains hopeful that the political instability that impacted the informal
trade will normalise post the local government elections. Grain prices should
remain deflationary through the end of the current financial year, whereafter the
inflationary effects of the El Niño weather patterns will become evident. Any
normalisation in global oil prices could provide a counterbalance to the
anticipated grain inflation.
As the two newly commissioned, state-of-the-art inland bakeries reach full
operational potential, progressive returns from the combined infrastructural and
logistics synergies are anticipated to gain momentum. Increased cash generation will
be directed towards funding capital expenditure, the ongoing reduction in debt levels
and further share buyback opportunities.
The Board is confident that the enlarged Group is well positioned to deliver
sustainable growth and value for shareholders.
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 short
form announcement and the results contained herein have been prepared in compliance
with the Listings Requirements of JSE Limited.
This announcement is a summary of information in the full unaudited interim results
for the six months ended 30 September 2026 (“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/2026/JSE/ISSE/PMRE/20261110.pdf
and published on the Company's website,
https://www.premierfmcg.com/investors/results-reports
on 10 November 2026.
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
10 November 2026
Date: 10/11/2026 07:05:00
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