RFG Holdings (RFG) H2 2025 earnings summary

Executive summary

• Regional segment delivered resilient revenue growth and strong operating profit margin, offsetting international segment weakness from lower global demand, US trade tariffs, and oversupply in deciduous fruit.

• Fresh foods benefited from cost recovery, while long-life foods and other categories saw market share gains through innovation and new product launches.

• Premier Group announced acquisition of all shares in a share swap, with RFG shareholders to own 22.5% of the enlarged group post-transaction.

• Transaction expected to close by March 2026, after which RFG will delist from the JSE, subject to regulatory approvals.

Financial highlights

• Group revenue grew 1.6% to ZAR 8.1 billion year-over-year; regional revenue up 4.1% to ZAR 6.6 billion; international revenue declined 7.9% to ZAR 1.5 billion.

• Fresh foods turnover rose 7.4% to ZAR 2.6 billion; long-life foods revenue up 2.1% to ZAR 4.1 billion.

• Gross margin declined 90 bps to 25%; group operating profit down 21% to ZAR 673 million.

• Normalized group operating profit margin at 9.6%, 120 bps lower year-over-year, excluding impairment.

• EPS down 21.8% to ZAR 1.704; headline earnings per share down 10.4% to ZAR 1.992.

• Net cash from operations ZAR 931 million, ZAR 51 million lower year-over-year.

• Final cash dividend of ZAR 0.70 per share; total dividend for the year ZAR 0.996, down 10.4%.

Outlook and guidance

• Focus on growing high-margin regional categories and diluting cyclical international exposure.

• Continued innovation and CapEx to drive profitable growth; planned CapEx for 2026 is ZAR 370 million.

• Regional segment expected to benefit from improving macroeconomic outlook and modest consumer growth.

• International segment to seek alternative markets to offset U.S. tariff impacts; pineapple production recovery anticipated.

• Global oversupply of deciduous fruit products and continued pressure on volumes and pricing anticipated.