South Africa’s oldest food producer is rocking

The first half of Premier Foods’ 2026 financial year saw a strong performance for the food producer.

Founded in 1824, Premier is one of South Africa’s oldest companies. It owns many well-known food brands, including Blue Ribbon, Iwisa, Manhattan, Mister Sweets, Snowflake, and Super C.

On Tuesday, 11 November, Premier released its interim results for the six months ended 30 September 2025.

The food producer reported a 6.4% rise in revenue to R10.3 billion, with operating profit up an impressive 17% to R1.1 billion.

The company said its Millbake division, which comprises 83% of revenue, was the main driver of this revenue growth, with an increase in revenue of 6.0%. 

The Millbake division, in turn, was boosted by wheat flour sales, which displayed encouraging volume growth during the period.

“Demand for the iconic Snowflake brand remains robust despite seeing an increase in price-based competitor activity,” Premier said. 

“Maize remains one of the most affordable ways to feed a family, so remains a key staple food product for most South Africans.”

The group’s Groceries and International division grew revenue by 8.1%.

The company’s net profit margin improved from 5.8% in the first half of its 2025 financial year to 7% in this latest six-month period. Net profit increased by 27.4% to R719 million.

Premier’s earnings per share shot up by 27.4% to 558 cents per share, while headline earnings per share were up slightly higher by 27.9% to 560 cents.

The food producer’s cash generated from operations increased by 34.7% to R1.3 billion, driven by growth in the group’s EBITDA and improved working capital management.

Most of the group’s capex in this period was spent on various site upgrades, including its Aeroton megabakery and HPC production and packing lines.

The company said the first phase of its Aeroton megabakery project is on track for mid-November 2025, with phase 2 set for February 2026.

“This significant undertaking is expected to meaningfully enhance efficiencies and economies of scale and to fundamentally improve the quality of the bread Premier offers to its consumers in the inland region,” the company said. 

“In addition, the speed and performance of the new lines will alleviate substantial capacity pressure in the region.”

“These investments are critical to future-proofing supply in high-demand areas and enabling sustained volume growth.”

Premier declared an interim dividend of 159 cents per share for the six months through September 2025.