Latest news with #R1.9bn
IOL News
10-06-2025
- Business
- IOL News
Strong annual performance for Premier Group despite consumer spending pressures
Premier Group, with brands Blue Ribbon, Snowflake, Dove, among others, produced strong results the year ended March 31, 2025 despite consumer spend still being under pressure. Premier Group, a leading consumer packaged goods company with brands Blue Ribbon, Snowflake, Dove, among others, produced strong results the year ended March 31, 2025 despite consumer spend still being under pressure. At a macro level, despite the successful transition to a Government of National Unity and inflation moderating to below the middle of the target range, high interest rates, volatile soft commodity prices and low economic growth continue to besiege the consumer. Despite this, shareholders got a final gross dividend of 271 cents per share up, up 23% from the prior year. The market welcomed the results, with Premier's share on Tuesday afternoon rising 2.95% to R137.39 on the JSE. Revenue increased by 7.0% to R19.9 billion, supported by revenue growth in both the Millbake and the Groceries and International divisions of 5.7% and 13.3%, respectively. Earnings per share increased by 31.0% to 936 cents and headline earnings per share increased by 26.8% to 943 cents, when compared to last year. "Through meticulous margin management and efficiencies, as well as a commitment to producing quality products at the lowest cost, moderate revenue growth has been leveraged into meaningful improvement in operational earnings," it said. Ebitda increased by 14.7% to R2.4 billion. Millbake Ebitda grew by 14.7%, while the Groceries and International Ebitda grew by 9.2%. The Group's Ebitda margin improved by 80 basis points to 11.8% compared to the prior year level of 11.0%. Operating profit increased by 16.9% to R1.9bn. The operating profit margin improved by 80 basis points to 9.6% when compared to last year. Net finance costs decreased by 16.7% to R306 million, the result of debt repayments made on borrowings and the reduction of interest rates post the refinancing of the syndicated debt facilities during the year. Cash generated from operations was in line with the prior year, at R2.4bn, enabled by growth in Ebitda and supported by disciplined working capital management. Looking at various divisions, Premier said the Millbake division achieved a "stellar set of results", displaying resilience despite a challenging economic environment. Revenue increased by 5.7% to R16.4 billion and Ebitda increased by 14.7% to R2.3bn. A good performance was achieved in the Groceries and International division. The division's revenue increased by 13.3% to R3.5bn and Ebitda increased by 9.2% to R233 million. The Home and Personal Care (HPC) category had "a pleasing year". The additional capacity installed in tampon manufacturing and packaging has enabled improved service levels, contributing to volume gains in the local business. The HPC supply chain strategy, focused on becoming the best cost manufacturer to drive market share and brand equity, is gaining traction, Premier said. Meanwhile, Sugar Confectionery's performance experienced some disruptions during the year which impacted service levels. "The new private label contracts and product launches continue to gain momentum and the new liquorice line, commissioned in December 2024, will add exciting new product ranges to the confectionery offering. The first phase of site consolidations has been completed, which is anticipated to enhance efficiencies between the two sugar confectionery sites," it said. Looking ahead, Premier said moderate revenue growth is anticipated for the most part of 2026 driven by substantial declines in maize input prices and subdued global wheat prices. Maize prices are expected to soften by mid-2025, Premier said will enable it to pass through cost savings to burdened consumers. It also warned that local food inflation will be impacted in 2025 by Eskom tariff hikes and failing water infrastructure mitigation. Meanwhile, the two-year capital project to refurbish the Aeroton bakery to the standards of Premier's coastalsites and the mega-bakery in Tshwane is expected to further enhance efficiencies and step change bread quality in the inland region. The Aeroton bakery will replace the capacity of three small-scale, older generation bakeries in the region. Investments in the HPC factory, scheduled for commissioning during the first half of 2026, are expected to further improve efficiencies and economies of scale. BUSINESS REPORT
TimesLIVE
28-05-2025
- Business
- TimesLIVE
KZN municipality to give poor 10,000 litres of free water a month
Poor households in the iLembe district municipality on the KwaZulu-Natal north coast will get 10,000 litres of water for free per month, while the rich will have to pay 13% more. At a media briefing in KwaDukuza on Wednesday after passing a budget of R1.9bn for the financial year 2025/2026, iLembe mayor Thobani Shandu said they regretted the increased water tariffs. 'The council has adopted a 13% increase for water and sanitation, down from the proposed 13.5% tabled during the council sitting of March 26,' said Shandu. 'It is important to note our increment is aligned with uMngeni-uThukela Water's bulk tariff hike. We are unlike some of neighbours who have opted to add input costs. 'Households valued at R130,000 or less will be exempt from sewer charges. These charges will be capped to the household value of R5m.'
The Herald
23-04-2025
- Business
- The Herald
Shareholders score big after record Capitec earnings
Capitec, South Africa's biggest retail bank by customers, is increasing its payout to shareholders after record annual earnings. The group's return on equity increased to 29% during the year under review, paving the way for the dividend payout to 55% from 50%. Capitec reported a 30% jump in headline earnings to R13.6bn from R10.6bn a year ago with financial highlights including a 54% increase in net interest income after credit impairments to R11.9bn. The group reported a 7.5% credit loss ratio, a 61% increase in value added services and Capitec Connect to R4.4bn and a 44% jump in funeral and life income to R1.9bn. The bank said more than 11-million clients now used the Capitec app to purchase airtime, data, electricity, vouchers and to pay bills. 'The bank captures more than 40% of South Africa's airtime and data transactions and one in five digital vehicle licence renewals now occur on its platform.' Capitec CEO Gerrie Fourie said: 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses and unlock opportunities. Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24-million South Africans to grow every day.' Capitec, which was previously predominantly a credit lender, said its diversification strategy had paid off as personal banking now contributes 45% of total earnings, insurance accounts for 25%, strategic initiatives contribute 23% and business banking makes up 5%. TimesLIVE
TimesLIVE
23-04-2025
- Business
- TimesLIVE
Shareholders score big after record Capitec earnings
Capitec, South Africa's biggest retail bank by customers, is increasing its payout to shareholders after record annual earnings. The group's return on equity increased to 29% during the year under review, paving the way for the dividend payout to 55% from 50%. Capitec reported a 30% jump in headline earnings to R13.6bn from R10.6bn a year ago with financial highlights including a 54% increase in net interest income after credit impairments to R11.9bn. The group reported a 7.5% credit loss ratio, a 61% increase in value added services and Capitec Connect to R4.4bn and a 44% jump in funeral and life income to R1.9bn. The bank said more than 11-million clients now used the Capitec app to purchase airtime, data, electricity, vouchers and to pay bills. 'The bank captures more than 40% of South Africa's airtime and data transactions and one in five digital vehicle licence renewals now occur on its platform.' Capitec CEO Gerrie Fourie said: 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses and unlock opportunities. Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24-million South Africans to grow every day.' Capitec, which was previously predominantly a credit lender, said its diversification strategy had paid off as personal banking now contributes 45% of total earnings, insurance accounts for 25%, strategic initiatives contribute 23% and business banking makes up 5%.
