RFG Holdings Limited (RFG) investor relations material

Executive summary

• Regional segment delivered resilient revenue growth and strong operating profit margins above target, with regional revenue up 4.1% to ZAR 6.6 billion, offsetting international segment weakness from lower global demand, US trade tariffs, and oversupply in deciduous fruit, which led to a 7.9% revenue decline and a drop in operating profit margin from 11.4% to 5.7%.

• Group revenue increased 1.6% to ZAR 8.1 billion year-over-year.

• Announced acquisition by Premier Group: RFG shareholders to receive one Premier share for every seven RFG shares, owning 22.5% of the enlarged group, with RFG to delist from the JSE post-transaction.

Financial highlights

• Group operating profit down 21% to ZAR 673 million, impacted by a ZAR 104 million impairment in the meat business.

• Normalized group operating profit margin at 9.6%, 120 basis points lower year-over-year.

• Earnings per share down 21.8% to ZAR 1.704; headline earnings per share down 10.4% to ZAR 1.992.

• Total dividend for the year ZAR 0.996 per share, 10.4% lower than prior year; final cash dividend of 70.0cps declared.

• Group gross profit margin declined 90 basis points to 25%.

Outlook and guidance

• Focus remains on growing high-margin regional categories and diluting exposure to cyclical international segment.

• Regional segment expected to benefit from improving macroeconomic outlook and modest growth in consumer spending, with continued product innovation.

• International segment to seek alternative markets and manage production volumes to offset U.S. trade tariff impacts; pineapple production recovery anticipated.

• Global oversupply of deciduous fruit products and continued pressure on volumes and pricing anticipated.

• Integration into Premier Group and maintaining regional operating margin above 10% are key priorities.