Premier Group (PMR) H1 2027 earnings summary

Executive summary

• H1 revenue rose 38.8% to R14.326bn and EBITDA increased 51.4% to R1.985bn, including the first full half-year contribution from Culinary after the RFG acquisition.

• Integration progressed to plan across merchandising, supply chains, procurement, distribution and systems; further benefits are expected in H2.

• Earnings growth was supported by Millbake performance and operational investment despite subdued core revenue growth, consumer pressure and informal-trade disruption.

Financial highlights

• Revenue was R14.326bn (+38.8%); EBITDA R1.985bn (+51.4%); operating profit R1.685bn (+52.5%); net profit R1.166bn (+62.1%).

• EBITDA margin rose 120 bps to 13.9%; operating margin increased 110 bps to 11.8%; net profit margin increased 110 bps to 8.1%.

• EPS rose 27.5% and HEPS 27.1% to 711.1 cents; weighted average shares increased by 35,075,010 following the transaction and repurchases.

• Cash generated from operations rose 43.0% to R1.818bn; working capital absorbed R179m versus R70m in H1 2026.

• Net finance costs increased 17.1% to R139m following debt assumed in the RFG transaction; the effective tax rate fell to 25.5% from 27.3%.

Outlook and guidance

• Merger benefits from operational integration and supply-chain synergies are expected to increase in H2; unified portfolio execution is intended to unlock growth.

• Grain prices are expected to remain deflationary through FY-end; El Niño-related inflation is expected thereafter, potentially offset by normalising global oil prices.

• The two new inland bakeries are expected to deliver progressively greater returns as they reach full operational potential and infrastructure and logistics synergies build.

• Increased cash generation is intended to fund capex, reduce debt and support potential further share buybacks; informal-trade disruption may normalise after local elections.