Wrap Text
Unaudited interim results for the six months ended 30 September 2024
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 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
FINANCIAL OVERVIEW
- Revenue increased by 3.7% to R9.7 billion
- EBITDA(1) increased by 13.5% to R1.2 billion
- Operating profit increased by 17.3% to R945 million
- Earnings per share ("EPS") increased by 34.2% to 438 cents per share
- Headline earnings per share ("HEPS") increased by 32.4% to 438 cents per share
(1) EBITDA defined as earnings before finance income and costs, foreign exchange (losses)/gains on cash and intergroup loan,
share of net profit in equity-accounted investments, tax, depreciation and amortization.
COMMENTARY ON PERFORMANCE
We take pleasure in delivering the interim results for the six months ended 30
September 2024 for Premier Group Limited and its subsidiaries (together "Premier" or
the "Group"). Premier has achieved an encouraging set of results, with moderate
revenue growth despite high interest rates, soft commodity volatility and a depressed
consumer environment during the period under review. The Group's improvement in
operational earnings was driven by a continued focus on margin management, cost
saving initiatives and the delivery of material operational efficiencies across both
manufacturing and the Group's logistics and distribution channels. The ongoing
commitment to our long-held strategy of investing in our assets, from state-of-the-
art facilities to a skilled and committed workforce, continued to bear fruit.
The Group's revenue increased by 3.7% to R9.7 billion, driven by increases in both
the Millbake and Groceries and International categories of 2.6% and 9.7%,
respectively. The suspension of loadshedding has been a welcome relief for the
economy and the consumer.
EBITDA increased by 13.5% to R1.2 billion, mainly driven by the growth in Millbake
EBITDA of 15.8%. Groceries and International EBITDA declined by 2.1%, largely as a
result of macro-economic conditions experienced by the Group's business in
Mozambique. The Group's EBITDA margin improved by 100 basis points, to 11.9%.
Operating profit increased by 17.3% to R945 million and the operating profit margin
improved by 110 basis points to 9.7%.
Net finance costs decreased by 18.2% to R166 million primarily due to the debt
repayments made on borrowings during the previous financial year. The Group's share
of net profit in equity-accounted investments increased to R12 million as a result
of the Group's acquisition of a 30% shareholding in Goldkeys with effect from 3 June
2024.
Earnings per share ("EPS") increased by 34.2% to 438 cents and headline earnings per
share ("HEPS") increased by 32.4% to 438 cents.
Cash generated from operations increased by 13.5% to R944 million, driven by the
growth in the Group's EBITDA and supported by disciplined working capital management.
MILLBAKE
The Millbake division continued to deliver robust results for the six months ended
30 September 2024. Revenue increased by 2.6% to R8.1 billion and EBITDA increased by
15.8% to R1.1 billion. The EBITDA margin improved by 160 basis points to 13.9%. The
moderate increase in Millbake's revenue is attributable to price/mix growth of 1%
and volume growth of 2%, which is encouraging given the constrained consumer
environment.
GROCERIES AND INTERNATIONAL
The Groceries and International division delivered an encouraging performance for
the six months ended 30 September 2024. The division's revenue increased by 9.7% to
R1.6 billion, however, EBITDA decreased by 2.1% to R105 million. The EBITDA margin
contracted to 6.4% from 7.2%.
The Sugar Confectionery category delivered a robust set of results. Revenue was up,
driven by a favourable product and customer mix. EBITDA was slightly up through tight
margin management and site optimisation. The Mister Sweet acquisition was confirmed
to be in-line with the original investment objectives following a three-year progress
review. Exciting private label launches have been introduced with further ranges in
the pipeline, as well as new pack sizes and innovations which are driving growth.
The Home and Personal Care category posted good results, with increases in both
revenue and EBITDA. The investment in additional capacity at the Durban facility has
enabled growth, and tampon manufacturing and packaging is ahead of efficiency
targets. The eCommerce channel in the United Kingdom ("UK") continues to gain traction
with significant year-on-year growth.
OUTLOOK
Going into the second half of the year, Premier will focus on sustaining the level
of success we have achieved year-to-date. We intend to further capitalise on the
efficiencies evidenced by the investment in our capital projects and to leverage our
facilities to unleash further growth. The Group is well positioned for growth, and
the Board and management will therefore remain disciplined in the allocation of
capital. Investment in our people through training and upliftment, to ensure we are
an employer of choice, will remain a key focus area.
Collaboration with all levels of government is critical to our business, ensuring
operational continuity, and our team engages regularly to maintain open dialogue and
mutually beneficial relationships. We will continue to align our corporate strategy
with our sustainability journey supporting a long-standing commitment to our purpose.
DIVIDENDS
Premier's dividend policy is to declare an annual dividend based on a pay-out ratio
of 30 – 60% of diluted headline earnings per share. As such and given the Group's
strong performance and cash generation, we intend to declare a full-year dividend in
terms of the aforesaid policy when we release our FY2025 results in June 2025.
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 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 2024 ("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/2024/JSE/ISSE/PMRE/20241112.pdf and
published on the Company's website, https://www.premierfmcg.com/investors/results-
reports on 12 November 2024.
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)
12 November 2024
Date: 12-11-2024 08:00:00
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