Premier Group (PMR) investor relations material

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 volume growth.

• 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 a share swap was announced, expected to close by March 2026, adding nearly R8 billion in revenue and R1.1 billion in EBITDA.

• Interim dividend of 159 cents per share declared, with a general share repurchase programme to be initiated at up to R154 per share.

• Market share remains robust: 27% in bread, 41% in wheat, 15% in maize, and 73% in UK non-applicator tampons.

Financial highlights

• Net profit rose 27.4% year-over-year to R719 million, with net profit margin up to 7.0%.

• Earnings per share increased 27.4% to 558c, headline EPS up 27.9% to 560c.

• Cash from operations grew 35% to R1.3 billion, with cash conversion improving to 81%.

• Operating profit margin improved to 10.7% (from 9.7%), and EBITDA margin to 12.7%.

• Voluntary debt repayment of R70 million reduced leverage from 1.0x to 0.7x.

Outlook and guidance

• Management targets double-digit profit growth and 15%-20% long-term EPS growth, supported by the RFG acquisition and operational improvements.

• Focus on operational efficiency, scaling up infrastructure, and leveraging new capacity from the Aeroton mega-bakery, with benefits expected in H2 2026.

• Management anticipates approval and implementation of the RFG transaction before year-end, broadening the product portfolio and enhancing integration synergies.

• No specific EBIT margin guidance provided.

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