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Premier Limited Announces Strong FY2024 Financial Results | Rateweb
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Premier Limited Announces Strong FY2024 Financial Results

Revenue and Profitability Surge

Premier Group Limited has reported robust financial results for the fiscal year ending March 31, 2024. The group’s revenue increased by 3.6% to R18.6 billion, driven by strategic operational efficiencies and effective margin management.

MetricFY2024FY2023% Change
RevenueR18.6 billionR17.9 billion+3.6%
EBITDAR2.1 billionR1.77 billion+18.6%
Operating ProfitR1.6 billionR1.27 billion+26.4%
EPS715 cents631 cents+13.3%
HEPS744 cents634 cents+17.4%
Normalised HEPS744 cents552 cents+34.8%

Strong Performance in Key Divisions

The Millbake division saw a 20.6% increase in EBITDA, contributing significantly to the group’s overall performance. This was due to improved efficiencies from recent upgrades in bakeries and wheat mills.

The Groceries and International division also showed positive results. This was marked by strong growth in sugar confectionery and solid performance in Home and Personal Care (HPC).

Cash Flow and Deleveraging

Cash generated from operations increased by 54.8% to R2.4 billion. This improvement was supported by strong EBITDA growth and better working capital management.

The company made substantial voluntary capital repayments on borrowings and reduced the leverage ratio to 0.9x, down from higher historical levels.

Financial MetricFY2024FY2023% Change
Cash Generated from OperationsR2.4 billionR1.55 billion+54.8%
Voluntary Capital RepaymentsR706 million
Leverage Ratio0.9x

Dividend Declaration

Premier declared a final gross dividend of 220 cents per share, totaling R286.2 million. The dividend reflects the company’s strong cash flow and balance sheet management. A dividend withholding tax of 20% will apply, resulting in a net dividend of 176 cents per share.

Dividend InformationValue
Gross Dividend per Share220 cents
Total Gross DividendR286.2 million
Dividend Withholding Tax44 cents
Net Dividend per Share176 cents
Payment Date5 August 2024

Strategic Acquisition

Premier acquired a 30% shareholding in Goldkeys International Proprietary Limited, effective June 3, 2024. Goldkeys, a leading rice distributor in South Africa, complements Premier’s staple foods portfolio.

The acquisition aims to enhance Premier’s market reach and operational synergies in the rice sector. The investment was settled in cash, and Premier has appointed representatives to Goldkeys’ board of directors.

Outlook for FY2025

Premier remains focused on operational efficiencies and agile execution amid lingering volatility in commodity prices. The company expects inflationary pressures to sustain revenue growth in the coming year.

The primary capital project for FY2025 is the refurbishment of the Aeroton bakery. Premier also plans to consider a mix of ordinary dividends, special dividends, and share buybacks as part of its commitment to shareholder returns.

Conclusion

Premier Group Limited has delivered strong financial results for FY2024. The company’s focus on operational efficiency, margin management, and strategic investments has positioned it well for future growth.