Remgro (REM) H2 2024 earnings summary

Executive summary

• Headline earnings fell 20% to ZAR 5.65 billion, with headline EPS down 18.8%, mainly due to non-recurring items and a challenging macroeconomic environment.

• Ordinary dividend increased 10% to 264c, with a 15% rise in the final dividend and INAV per share up 1%.

• Strategic focus on portfolio optimization, integration of unlisted assets, and unlocking value through divestments and new growth opportunities.

• Significant progress in deleveraging, divestments, and new shareholder partnerships.

• Local reforms and easing inflation provided positive momentum for medium-term portfolio growth.

Financial highlights

• Headline earnings decreased by 20% year-over-year to ZAR 5.65 billion, with muted operational performance from key investments.

• HEPS declined 18.8% to 1,018c; closing share price R136.09, down 7.5% year-over-year.

• Dividend per share increased 10% year-over-year, with a final dividend up 15%.

• INAV per share rose 1%, supported by share repurchases and strong listed asset performance; INAV discount widened to 45.8%.

• Net cash at the center increased by ZAR 3.2 billion, despite a ZAR 2.2 billion decrease in cash due to preference share redemption.

Outlook and guidance

• Management expects continued improvement in the second half, with green shoots in key investments and a focus on operational turnarounds.

• Anticipates further growth in OUTsurance, Rainbow, and RCL Foods, with ongoing efforts to improve Mediclinic and Heineken performance.

• CIVH's growth is contingent on regulatory approval of the Vodacom transaction, with plans to accelerate fiber rollout if approved.

• Improving local operating context and reform momentum expected to support medium-term portfolio growth.

• Focus remains on executing strategic priorities, including ESG leadership and enhanced disclosure.