The Premier Group’s turnover for the six months to the end of September increased by 3.7% to R9.7 billion. This was despite obstacles such as high interest rates, volatile commodity prices, and pressure on the consumer environment during this period.
In its unaudited interim results for these six months, the group says operating profit increased by 17.3% to R945 million, and earnings per share rose by 34.2% to 438 cents per share. According to its Sens report, Premier says its normalised earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 13.5% to R1.2 billion.
This is mainly due to the Millbake business unit, whose EBITDA increased by 15.8%, while the other business units, Groceries and International, saw their EBITDA decrease by 2.1%. Their turnover increases were 2.6% and 9.7%, respectively. In its statement, the company says lifting load shedding was a welcome relief for the economy and consumers. The improvement in operating earnings is attributed to the continued emphasis on managing profit margins, cost-saving measures, and operational efficiency in manufacturing, logistics, and distribution.
The group says the ongoing commitment to investing in assets for the best possible facilities for a skilled and diligent workforce continues to bear fruit. For the second half of the financial year, the focus will remain on building upon the success achieved thus far. Investment will be made in capital projects to generate further growth. The board and management believe the group is well positioned for growth, and discipline will be maintained in capital allocation while investing in staff training and development so Premier can remain a preferred employer. Cooperation at all levels of government is also considered crucial for operational progress, and therefore, regular liaison and dialogue take place to create relationships beneficial to all.
