South African food producer behind Snowflake and Blue Ribbon is booming

In its 2026 financial year, Premier oversaw two major developments that should set the company up well for future growth, with the food producer and its shareholders already reaping the rewards.

From the R6.5 billion acquisition of Rhodes Food Group (RFG) to the commissioning of its new Aeroton Bakery, Premier’s 2026 financial year contained notable milestones aimed at setting the company up for future success.

Founded in 1824, Premier is one of South Africa’s oldest companies and is the producer behind household brands like Blue Ribbon, Bisto, Bull, Snowflake, Manhattan, and Lil-lets.

Premier released its results for the year through March 2026 on Wednesday, 17 June, which revealed a very strong performance for the group.

Its revenue jumped by 6.6% to R21.2 billion, while its EBITDA surged by 18.2% to reach R2.8 billion.

This was largely driven by Premier’s biggest segment, its Millbake division, which accounted for over 80% of revenue.

In addition, the group’s Groceries and International division benefited from the contribution of RFG’s financial results, with this segment’s revenue up 13.5%.

The group’s net profit grew by a remarkable 29.3% to R1.6 billion, which saw its net profit margin reach 7.4%.

Premier’s earnings shot up by 27.4% to 1,192 cents per share, and headline earnings rose by 27.7% to 1,204 cents per share.

These strong results follow a bumper year for Premier, which saw several strategic developments in its business.

Most notable was its acquisition of RFG, one of Premier’s biggest competitors and the company behind iconic brands such as Rhodes and Bull Brand.

Completed in March 2026, this R6.5 billion acquisition saw Premier’s brand portfolio grow to 52 names, with the company now also operating from 44 sites across the country.

Another major development was the completion of Premier’s Aeroton Bakery, which became fully operational in March 2026.

This so-called mega-bakery, Premier’s first, was built over three years and is expected to take the food producer to the next level.

The company said in its results that the Aeroton Bakery is projected to meaningfully contribute to economies of scale and introduce further efficiencies in its bread manufacturing and distribution process.

With this project complete, Premier can now also decommission some of its old bakeries and improve bread availability in its inland markets.

While Premier is set to reap significant rewards from this project, shareholders are feeling some of the success too, with the food producer having declared a substantial dividend on the back of its strong results.

Premier declared a final cash dividend of 182 cents per share. Combined with its interim payout, this brings its total dividend for the year to 341 cents per share, up 25.83% from 2025.