Remgro reported a solid performance for the six months ending December 2024, with intrinsic net asset value (INAV) per share increasing 10.3% to R276.89. Headline earnings surged 38.7% to R3.73 billion. Headline earnings per share (HEPS) grew 38.6% to R6.72, led by strong contributions from Mediclinic, RCL Foods, and OUTsurance.
Remgro’s interim dividend increased 20% to R0.96 per share, showcasing management’s confidence in sustained earnings growth and disciplined capital management.
● Mediclinic: Contribution to headline earnings surged 56% to R883 million, driven by volume growth across all divisions.
● Heineken Beverages: Returned to profitability, reducing its loss from R386 million to just R11 million, benefiting from volume growth.
● RCL Foods: Increased headline earnings contributions by 29%, supported by operational efficiencies and cost controls.
● OUTsurance: Contribution grew nearly 46% to R624 million, reflecting strong market expansion.
● Rainbow Chicken: Notable turnaround, contributing R255 million, up from just R18 million in the prior period.
Analysis & Outlook
With a 28% share price increase from June 2024, Remgro continues to trade at a 27% discount to its book value. This presents an opportunity for long-term investors, with management emphasising ongoing efforts to unlock and optimise shareholder value. Chairman Johann Rupert reaffirmed Remgro’s commitment to disciplined capital allocation and portfolio optimisation, particularly as the local economic environment shows signs of recovery.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
