Remgro’s chairman, Johann Rupert, backs the investment holding company to use its experience to adapt to the challenging operating environment and seize any opportunities that come its way.
Rupert wrote in his Chairman’s Report letter to shareholders that “we are living through a globally turbulent period” and economic challenges that are unrelenting.
In the company’s results presentation earlier this year, it warned of increased social instability due to the current economic environment and stagnant growth.
“The current economic environment is troubling. The disruption in business operations directly impacts consumers and runs the risk of increased social instability due to the undoing of livelihoods and rise in poverty levels,” the company said.
“With low levels of expected economic growth – combined with the breakdown of state infrastructure relating to energy, transport and logistics, and the slow pace of economic reforms to date – the urgency to address these issues cannot be overstated.”
Remgro emphasised the negative impact of consistently elevated levels of load-shedding, high inflation and interest rates, electricity price increases, exchange rate volatility, geopolitical tensions, and crime and corruption.
“All of these features, compounded together, have created what is probably one of the most difficult business environments to operate in since Remgro’s inception.”
However, the company said that it would not take these challenges lying down and would not sit on the sidelines.
“We are not going to sit on the sidelines. We are not going to lie down. These are big challenges, but these challenges can be solved,” Remgro CFO Neville Williams said.
Remgro is implementing several strategies to mitigate against the negative impact of load-shedding and inefficient logistics.
“It is very difficult in this environment to grow our companies. But, we are doing everything we can to grow the economy and provide goods and services for our customers,” Williams said.
Rupert added to William’s positive approach to the challenges facing the company, saying that Remgro has always had to face uncertainty and relentless challenges.
“It is this attitude, grounded in our Group’s culture, that’s enabled us to consistently create sustainable long-term value for our shareholders,” Rupert said.
Rupert said the long-term success of Remgro and any business “lies in its ability to adapt and seize the opportunities that present themselves in an ever-changing environment”.
Remgro remains committed to being the investment company of choice in South Africa by consistently creating shareholder value.