Premier Group (PMR) H2 2026 earnings summary

Executive summary

• Completed the acquisition of RFG Holdings for ZAR 6.5 billion, consolidating RFG's balance sheet from March 11, 2026, and forming a new Culinary division within Groceries.

• RFG contributed 21 days to the FY26 income statement, with an immaterial impact on results; future reporting will reflect Millbake and Groceries divisions.

• Millbake division remains the largest, accounting for 81% of revenue, with strong bread and maize market share gains.

• EBITDA has grown at a 16% CAGR since listing, with operating profit and EPS also showing strong compound growth.

• Significant investments in automation, efficiency, and product innovation, including the commissioning of the Aeroton bakery.

Financial highlights

• Revenue reached ZAR 21.2 billion, up 7% year-over-year; EBITDA rose 18% to ZAR 2.8 billion, with margin up to 13.1%.

• Operating profit increased 23% to ZAR 2.4 billion; net profit up 29% to ZAR 1.6 billion.

• EPS grew 27% to ZAR 11.92; HEPS up 28% to ZAR 12.04.

• Cash generation from operations was ZAR 3.3 billion, up 40% year-over-year.

• Dividend for the year totals ZAR 3.41 per share, up from 2.71 per share in 2025.

Outlook and guidance

• RFG integration progressing well, with expected synergies exceeding ZAR 100 million and focus on expanding the Groceries division.

• Price increases of ~5% implemented to offset inflation in fuel and packaging; no margin pressure expected in FY27.

• Continued focus on de-gearing to reach a 0.5x leverage ratio and further capital investment, especially in culinary and efficiency projects.

• Aeroton bakery commissioning to enhance efficiencies and capacity in the inland region.

• Super El Niño may impact grain supply and prices, with proactive grain procurement in place.