S.Africa's Premier Group reports jump of 32.4% in interim profit

American Financial

12/11/2024 07:19

JOHANNESBURG, Nov 12 (Reuters) - South African food
producer Premier Group  PMRJ.J  posted on Tuesday a rise of
32.4% in half-year profit at the upper end of its forecast
range, boosted by cost-saving initiatives in a challenging
operating environment.
    The 200-year-old company which listed last year said its
headline earnings per share (HEPS)- a profit measure - grew to
438 cents for the six months ended Sept.30 from 331 cents a year
ago.
    The maker of Blue Ribbon bread and Snowflake flour  has
invested in its manufacturing capabilities by building
high-volume bakeries and other modern equipment that have
improved quality and cut production costs.
    Group revenue grew marginally by 3.7%, to 9.7 billion rand 
($539.38 million), despite a challenging environment marred by
"high interest rates, soft commodity volatility and a depressed
consumer environment," the company said in a statement. 
    Operating profit increased by 17.3% to 945 million rand,
benefiting from the suspension of load-shedding, which further
improved operations in Premier's core categories. 
    The group, which vies for market share with rivals such as
Tiger Brands  TBSJ.J , Pioneer Food and RCL Foods  RCLJ.J ,
recently bought a 30% stake from rice importer Goldkeys
International, to gain exposure to the market in the staple.
($1=17.9836 rand)

 (Reporting by Sfundo  Parakozov; Editing by Clarence Fernandez)
 ((Sfundo.Parakozov@thomsonreuters.com;))