Johann Rupert’s Remgro sees strong growth

Cape Town – Johann Rupert-owned Remgro is expecting a year-on-year increase of 33% to 43% in its headline earnings per share (Heps) when it releases its interim results later this month.

This follows a challenging 2024 financial year, during which the company’s profit dropped by over 70%.

In 2024, Remgro focused on reshaping its business for future growth, including the sale of Distell to Heineken and the delisting of Mediclinic, as reported by Daily Investor.

“While strong contributions were made by some of Remgro’s investee companies, considerable work still needs to be done to improve the operational performance of several key investments,” the company stated during its 2024 results presentation.

Despite the hurdles, Remgro remains committed to optimising its portfolio.

One of the key challenges came from Remgro’s investment in Heineken Beverages, which faced pressure due to its premium pricing strategy. This approach struggled to compete against lower-priced competitors, such as Black Label.

However, Heineken Beverages has introduced cost-saving initiatives, which have helped recover revenue, contributing to the expected earnings increase.

Meawhile, according to IOL, on Tuesday, Remgro’s share price rose nearly 4%, following the announcement that its Heps for the six months ended December 31, 2024, would likely increase by up to 43%.

The rise in Heps is attributed to stronger performances from its investee companies, as well as prior-year adjustments. By 1:12 pm, the share price had climbed 3.79% to R154.82 on the Johannesburg Stock Exchange.

Remgro indicated that Heps for the period would likely range between 645 cents and 694 cents, up from the prior period’s 381 cents per share.

“The increase in headline earnings is driven by improved operational performances from the majority of Remgro’s investee companies, lower finance costs, as well as the negative impact of significant corporate actions in the comparative period,” the report quoted the company as saying.

The adjusted Heps also reflects an accounting correction from Remgro’s investee, TotalEnergies Marketing South Africa.

Full results will be released on or around 25 March 2025.