Strong performance for Premier Group despite consumer spending pressures

PREMIER Group, a leading consumer packaged goods company with brands Blue Ribbon, Snowflake, Dove, among others, produced strong results the year ended March 31, 2025 despite consumer spend still being under pressure.

- PHILIPPA LARKIN

At a macro level, despite the successful transition to a Government of National Unity and inflation moderating to below the middle of the target range, high interest rates, volatile soft commodity prices and low economic growth continue to besiege the consumer.

Despite this, shareholders got a final gross dividend of 271 cents per share up, up 23% from the prior year. The market welcomed the results, with Premier's share on Tuesday afternoon rising 2.95% to R137.39 on the JSE.

Revenue increased by 7.0% to R19.9 billion, supported by revenue growth in both the Millbake and the Groceries and International divisions of 5.7% and 13.3%, respectively.

Earnings per share increased by 31.0% to 936 cents and headline earnings per share increased by 26.8% to 943 cents, when compared to last year.

"Through meticulous margin management and efficiencies, as well as a commitment to producing quality products at the lowest cost, moderate revenue growth has been leveraged into meaningful improvement in operational earnings," it said.

Ebitda increased by 14.7% to R2.4 billion.