Premier Group Shares Jump 8% Following Strong Earnings Forecast

On Monday afternoon, food producer Premier Group saw its share price soar by over 8% following the publication of its trading statement for the fiscal year concluding on March 31, 2025.

Since its listing on the JSE two years ago, the company projects that headline earnings per share will increase by 20% to 30%, amounting to between 893 cents and 967 cents.

Read: Brait benefits from Premier performance [Nov 2024]

Premier Group is recognized for its well-known products, including Blue Ribbon bread, Iwisa maize meal, Mr Sweet confectionery, and Snowflake flour.

In a trading update issued via Sens, the company indicated that it expects mid-single-digit revenue growth during the review period, despite facing challenges like high interest rates, constrained consumer spending, and variable soft commodity prices.

Only last week, the South African Reserve Bank opted to keep its benchmark repo rate unchanged at 7.5% after the Monetary Policy Committee (MPC) convened.

Premier Group attributes its operational earnings growth to continuous initiatives in margin management, cost reduction, and the enhancement of operational efficiencies across its manufacturing, logistics, and distribution frameworks.

A year ago

For the fiscal year ending March 2024, the group experienced a 3.6% increase in year-on-year revenue, reaching R18.6 billion, while headline earnings per share surged by 17.4% to 743 cents.

Read: Premier’s shares surge due to double-digit profit growth [Jun 2024]

“The transition to single-digit revenue growth was expected due to the effects of significant soft commodity inflation last year and its subsequent stabilization,” remarked CEO Kobus Gertenbach.

Premier Group intends to publish its financial results for the year ending March 31, 2025, around June 10.

Stay informed with Moneyweb’s extensive coverage of finance and business news on WhatsApp here.