SOUTH AFRICA – South African food producer Premier Group has posted a near 40% jump in annual profit despite increasing commodity prices and rising inflation
According to the company, the headline earnings reported on June 6 correspond to earnings per share of 634 cents for the year ended 31 March, up from 453 cents a year earlier.
In addition, the company noted that the group’s revenue increased by 23.4% year-on-year to R17.9 billion (US$928 million), driven by increases in revenue in both the Millbake and the groceries at international categories of 25.4% and 14.5%, respectively.
Premier Group produces food brands including Blue Ribbon, Snowflake, Iwisa, Mister Sweet, and Manhattan confectionery, as well as home and personal care brands Lil-lets, Dove Cottons, and Vulco.
The company, however, stated that like other food producers, Premier Group has had to endure soaring inflation and incessant power cuts.
“Loadshedding continues to impose multiple operational challenges … but despite indications that load shedding will persist for the remainder of the year, the future performance of the group is not expected to be materially impacted. “
However, the company prides itself in that it has managed to mitigate the effects of South Africa’s worst load shedding on record which leaves households and businesses in the dark for up to 10 hours daily. In addition, in March, the company was listed on the local bourse.
Premier Group hopes to continue delivering investment returns to its shareholders and make a difference in the everyday lives of its consumers.
The company’s strategic priorities include improved distribution, product availability, and forward share management as it seeks to increase market penetration. It will also focus on innovation and product renovation to strengthen product margins and brand equity.
Recently, the company acquired the remaining half of Futurelife Health, eight years after buying its initial stake in the maker of nutrient-dense breakfast cereals and snacks, making Futurelife a wholly-owned subsidiary of Pioneer Foods.
However, the company revealed that the transaction, which is subject to some administrative condition’s precedent, is expected to close and be effective in the first week of July after the South African Competition Commission recommended the conditional approval of the acquisition earlier this month.