Premier reported an over 30% increase in operating profit for the six months through September 2023.
Premier released its results for the six months ended 30 September 2023 today, which revealed strong results for the food producer.
Revenue is up 7.1% to R9.4 billion, and EBITDA grew by 23.9% to R1 billion.
Earnings per share increased by 0.3% to 326 cents, and headline earnings per share (HEPS) increased by 0.8% to 331 cents.
However, when adjusted for foreign exchange gains and other once-off items, normalised HEPS increased by 25.4%.
Cash generated from operations increased by 33.6% to R831 million, underpinned by the growth in the Group’s EBITDA and supported by well-managed working capital, the company said.
Operating profit increased by 33.3% to R805 million as the operating profit margin improved by 170 basis points, when compared to the same period last year, to 8.6%
Net profit increased by 6.1% to R424 million.
This comes despite net finance costs increasing by 182%, mainly due to higher interest rates and finance costs on additional borrowings of R1.04 billion drawn in November 2022.
The company said these results were achieved despite a trading environment characterised by currency and soft commodity volatility, extensive infrastructural constraints and high interest rates.
“The consumer remains under significant stress, which has been compounded by the low growth economy, but the reduced load-shedding regime has been a welcome relief,” the company said.
“Inflation is anticipated to flatten as soft commodity prices continue to decline and stabilise. In line with this, price relief in wheat and maize has been passed through to the consumer, providing some respite from the inflationary impact on staple foods experienced in the recent past.
Premier did not declare an interim dividend.