Remgro (REM) H1 2025 earnings summary

Executive summary

• Headline earnings rose 38.7% year-over-year to R3,728 million, with headline EPS up 38.6% to 672 cents, driven by strong operational performance across key portfolio companies and lower finance costs after preference share redemptions.

• Interim dividend increased by 20% to 96 cents per share, reflecting improved cash earnings and dividends received at the center up over 30%.

• Intrinsic net asset value (INAV) per share increased 10.3% to R276.89, with the share price up 14% to R155.10, representing a 44.0% discount to INAV.

• Portfolio optimization, de-gearing of the balance sheet, and disciplined capital allocation have created capacity for future growth.

• Key portfolio companies such as Mediclinic, OUTsurance Group, RCL Foods, Rainbow, and Heineken Beverages delivered notable improvements in operational and financial performance.

Financial highlights

• Headline earnings increased 38.7% year-over-year to R3,728 million; headline EPS up 38.6% to 672 cents.

• INAV per share rose 10.3% to R276.89; share price up 14% to R155.10; discount to INAV at 44.0%.

• Net cash at the center increased to R7,490 million, following redemption of preference shares and sale of FirstRand shares.

• Dividends received at the center rose to R2,004 million, up over 30% from the prior period.

• Net profit for the period was R3,658 million, compared to a restated loss of R1,638 million in the prior year.

Outlook and guidance

• Management expects continued focus on operational improvements, margin enhancement, and sustainable growth across the portfolio.

• Ongoing ESG strategy refinement and improved disclosure, with active stakeholder engagement.

• Mediclinic anticipates stable or slightly improved EBITDA margins and above-inflation revenue growth in South Africa and the Middle East, with stable margins in Switzerland.

• RCL Foods targets growth in branded business, innovation in bread and pet categories, and ongoing margin improvement.

• Management remains committed to disciplined capital allocation and unlocking further value despite external uncertainties.