Remgro Earnings Report
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.
Key Portfolio Highlights
● 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.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
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