South Africa’s oldest food producer is booming

Premier expects to report earnings growth of up to 30% in its upcoming results for the 2026 financial year, as the food producer increased volumes and benefited from improved efficiencies.

The company also reported that the commissioning of its Aeroton mega-bakery is expected to further enhance these efficiencies, setting Premier up for even greater success.

Founded over two centuries ago in 1824, Premier is one of South Africa’s oldest companies, and by far its oldest food producer.

The company is also one of South Africa’s largest food producers, known for brands like Snowflake Flour, Blue Ribbon, Iwisa, Mister Sweet, and Super C.

On Friday, 20 March, Premier released a trading statement detailing its expected performance in the year ending 31 March 2026.

This statement revealed that Premier expects its earnings and headline earnings per share to increase by between 20% and 30%.

In addition, the company expects to achieve revenue growth of mid-single digits for the 2026 financial year, notwithstanding deflation in global grain prices.

“Recent crop estimates and global stock levels indicate ample grain availability, which is expected to result in continued subdued pricing in the near term,” it said.

The food producer explained that it benefited from volume growth over the year, which translated into a meaningful uplift in operational earnings, supported by improved efficiencies and consistent operational execution. 

In addition, it reported sustained capital investment across its asset base, with a focus on “manufacturing excellence, people development and supply chain optimisation”.

This, the company said, contributed to the delivery of continued tangible growth.

One of Premier’s biggest capital investments over the past few years has been its long-delayed Aeroton mega-bakery project, which opened in November 2025.

In its trading statement, the company said the commissioning of this mega-bakery represents a key milestone and is expected to further enhance operational efficiencies, drive economies of scale and improve the quality of Premier’s bread in the inland region.

Anchor Capital investment analyst Sean Culverwell previously said the bakery would allow Premier to consolidate its regional manufacturing footprint by mothballing its three older bakeries in Vereeniging, Old Pretoria and Potchefstroom.

This will lower the requirement to transport bread from other facilities to service the area, resulting in cost savings.

Premier also updated shareholders on its deal with RFG Holdings, which was first announced in October 2025.

RFG Holdings, previously known as Rhodes Food Group, specialises in convenience meal solutions and started as a canned fruit and jams producer in 1896.

In mid-October 2025, Premier announced that it had entered into a deal to buy all of RFG’s issued ordinary shares, excluding those held by RFG or its subsidiaries.

Now, Premier said the two parties are proceeding with the implementation of the scheme of arrangement, which is expected to be completed by 30 March 2026. 

Culverwell said this deal makes both strategic and financial sense, saying the acquisition of RFG will address two of Premier’s major weaknesses – limited liquidity and concentration risk.

“Consolidating RFG addresses both, while also providing immediate earnings accretion,” he said.

“The industrial and route-to-market synergies between the two companies are obvious on paper, but such benefits are often difficult to deliver in practice.”