JSE-listed consumer packaged goods (CPG) manufacturer Premier Group has reported a 31% increase in earnings per share (EPS) to 936 cents and in headline earnings per share (HEPS) of 27% to 943 cents for the year ended 31 March, driven by operational execution, infrastructure investment and disciplined cost management.
Net profit rose 31% to R1.2 billion, while operating profit grew 17% to R1.9 billion. The Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 15% to R2.4 billion, translating into a margin uplift from 11.0% to 11.8%.
Turning modest growth into substantial gains
CEO Kobus Gertenbach said the strong earnings performance highlights Premier’s ability to turn modest revenue growth (up 7% to R19.9 billion) into substantial gains in operational profitability.

“We’ve remained focused on what we can control – investing in capacity, driving efficiency, and keeping our cost base lean. That discipline is now clearly visible in our continued earnings growth,” said Gertenbach.
In the three financial years since Premier listed on the JSE in March 2023, Premier has developed a track record of growth and financial performance. Over this period, EBITDA, has grown from R1.5 billion to R2.4 billion, at an average annual growth rate of 16% p.a. and HEPS has grown by 28% p.a. from 453 cents per share to 943 cents per share for FY2025.
Staying the course
Premier, which owns iconic South African brands including Blue Ribbon, Snowflake, BB Bakeries and IWISA, amongst others, operates with a margin-focused approach, as its revenue is closely tied to fluctuations in global grain prices. In FY2025, lower global wheat prices and record-high, weather-driven maize costs, which reached record levels during the year, detracted from revenue growth for the year.
“Despite the weak macroeconomic environment, we stayed the course – continuing to invest in state-of-the-art facilities and in the upskilling and engagement of our workforce,” Gertenbach said. “That long-term focus has helped us build resilience and deliver on our intention of creating sustainable value for our stakeholders and making a difference in the everyday lives of our consumers.”
Overcoming challenging economic environment
Premier’s largest division, Millbake, which includes its bread and flour operations, achieved a stellar set of results despite the challenging economic environment, delivering 6% revenue growth to R16.4 billion, with EBITDA increasing 15% and margins rising by 100 basis points to 13.7%. Volume growth of 4% was recorded despite inland capacity constraints and pricing pressure in maize-based products.
The Group is finalising the Aeroton mega-bakery project, due for commissioning in the second half of FY2026. The facility will replace three smaller bakeries and is expected to enhance product consistency and cost efficiency in the inland region.
In the Groceries and International division, revenue increased by 13% to R3.5 billion, with growth supported by improved service levels in the Home and Personal Care (HPC) segment. EBITDA grew by 9%,
however, the EBITDA margin declined slightly to 6.7%, owing to a change in mix and volume declines on the core category in the UK and temporary disruptions in the Sugar Confectionery operations.
Cash generated from operations was stable at R2.4 billion, while capital expenditure increased to R726 million, primarily for infrastructure upgrades including the Aeroton bakery and a new liquorice line that was commissioned at the confectionery operations in December 2024.

Premier’s net debt reduced to R1.7 billion, and the group reduced its leverage ratio to 0.7x from 0.9x in FY2024. A final dividend of 271 cents per share was declared (up from 220 cents per share in FY2024), consistent with the Group’s policy of distributing 30% of diluted headline earnings.
Return on invested capital (ROIC) improved by 250 basis points to 24.9%, while return on equity (ROE) remained strong at 30.6%. This demonstrates Premier’s ability to earn returns above its cost of capital which creates value for its shareholders.
Growing investor confidence
In September 2024, Premier was included in the FTSE/JSE All Share Index, a milestone that reflects growing investor confidence in the Group’s performance and strategy.
“We take immense pride in being stewards of investor capital and remain committed to delivering sustainable, above-market returns,” said Gertenbach. “Our growing shareholder base on the JSE is a vote of confidence in our long-term growth story.”
Looking ahead, Premier expects moderate revenue growth in FY2026, driven by lower maize input costs and subdued global wheat prices. The Group expects maize prices to soften by mid-2025, which will enable it to pass through cost savings to burdened consumers. However, inflationary risks from Eskom tariffs and infrastructure constraints remain.
Food security in focus
At the heart of Premier’s strategy is a commitment to food security, particularly for low-income households. With a broad staples offering, low-cost production model and national distribution footprint, the Group is well placed to support affordability and consistent supply in a volatile environment.
Ongoing investment in the Aeroton bakery and equipment upgrades at the HPC facility will drive further gains in efficiency and scale. Premier continues to take a disciplined approach to capital allocation, while also exploring acquisition opportunities to expand its CPG footprint and long-term impact.
Gertenbach added that Premier remains well positioned to deliver sustainable returns by staying “brilliant at the basics,” with a strong focus on efficiency, safety, operational excellence and execution – all while ensuring its products and people make a meaningful impact in consumers’ daily lives.
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