JSE-listed food company, Premier, anticipates both headline and earnings per share to increase by as much as 33% in the six months to the end of September.
In a trading update published yesterday, Premier said it had “achieved moderate revenue growth during the period under review despite the high-interest rate environment, constrained consumer spending and volatile soft commodity prices”.
Interest rates were dropped by 0.25 percentage points on September 19, taking them down to 11.5%, while inflation eased to 4.4% as of August.
Premier, which was valued at almost R14 billion on the JSE as of yesterday, reported that earnings per share were anticipated to gain by between 27% and 35% against the 326 cents reported in the previous comparative period.
Headline earnings per share, a core measure of profitability that strips out unusual items, are expected to be between 25% and 33% higher versus last year’s 331 cents.
Premier said its improvement in operational earnings was due to a continued focus on margin management, cost saving initiatives and the delivery of material operational efficiencies across both manufacturing and its logistics and distribution channels.
The 200-year-old company produces sweet brands such as Mister Sweet, Iwisa, Blue Ribbon bread, rice, wheat, and personal care products. In the 2024 financial year, it reported revenue up 4% to R18.6bn and a maiden dividend of 220 cents a share.
In its 2024 annual report, chairman Iaan van Heerden said the year was challenging “with increasing geopolitical tension and conflicts. Economic challenges, with sustained inflation across the globe, have put pressure on spending and investment”.
He noted that South Africa was not shielded from these challenges and local businesses had to deal with, among other concerns, electricity, water and infrastructure challenges, the lack of service delivery in key metros, currency and commodity price volatility and uncertainty brought about by a national election, which has since led to the formation of a Government of National Unity.
Premier’s results are expected to be released around November 12.
BUSINESS REPORT