Premier Group (PMR) H2 2024 earnings summary

Executive summary

• Celebrated 200th anniversary, highlighting a legacy of heritage South African brands and recent JSE listing.

• Robust financial results for FY2024, with revenue up 4% year-over-year to R18.6bn and EBITDA up 19% to R2.1bn.

• Net profit increased 16% to R921m, with a net profit margin of 5.0%.

• Maiden dividend of 220 cents per share announced.

Financial highlights

• Revenue grew at a 4-year CAGR of 14%, reaching R18.6bn in FY2024.

• Operating profit rose 26% year-over-year to R1.6bn, with margin improvement from 7.2% to 8.8%.

• EBITDA margin improved to 11.0% from 9.6% in the prior year.

• Cash generated from operations increased 55% to R2.4bn; free cash flow conversion rose to 81%.

• Group leverage ratio reduced to 0.9x from 1.7x, with significant voluntary debt repayments.

• Return on invested capital increased to 22.4%.

Outlook and guidance

• Inflationary pressures and commodity volatility expected to sustain revenue growth.

• Cost efficiencies to support margin continuation; focus on Aeroton bakery rebuild as primary capital project.

• Continued engagement with government and emphasis on sustainability vision.