Remgro Sees Dividend Increase Amidst Earnings Challenges and Strategic Repositioning

Remgro has demonstrated resilience amidst challenging market conditions, showcasing positive momentum on key strategic initiatives, despite muted earnings performance. For the financial year ending 30 June 2024, the company recorded a 10% increase in its ordinary dividend per share to 264 cents. However, headline earnings per share (HEPS) fell by 18.8% from 1,254 cents to 1,018 cents, reflecting the impact of ongoing corporate actions and macroeconomic challenges.

CEO Jannie Durand acknowledged the headwinds faced by the group, particularly the operational challenges of Heineken Beverages, which contributed to a notable decline in headline earnings. Despite this, Remgro remains committed to repositioning its portfolio and optimizing investments. The company’s intrinsic net asset value per share increased by 1% to R251.01, signaling long-term growth potential.

Remgro has continued to integrate transformative corporate actions, which, while affecting earnings, are crucial for future growth. The Heineken-Beverages transaction, along with other key deals, led to non-recurring charges, including IFRS 3 amortization and transaction costs. The company remains focused on embedding these actions into its broader strategy, expecting future benefits from these investments.

Durand emphasized the ongoing progress in strategic initiatives, noting that improved performances from RCL Foods and Rainbow Chicken Limited signal early positive momentum. He reiterated the group’s commitment to long-term growth despite short-term challenges and remains optimistic about future opportunities.