Chair Johann Rupert says the group remains focused on disciplined capital allocation
19 September 2024 - 09:17
by Hilary Joffe and Jacqueline Mackenzie
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Remgro has increased its annual dividend by 10% despite its headline earnings falling almost 20% in what the investment holding company called a “challenging period”.
The group, which has investments in energy, healthcare, fibre, financial services, food and beverages, reported headline earnings decreased by 20% to R5.65bn in the year to end-June, and headline earnings per (HEPS) share fell 18.8% to 1,018c.
The difference between the HEPS measure and headline earnings represented the accretive impact of shares repurchased during the 2023 financial year and the beginning of the year under review, the group said in a statement on Thursday.
“The 2024 financial year was a challenging period with the continued focus on concluding and integrating a series of transformative corporate actions that still impact Remgro's results,” chairperson Johann Rupert said.
He added that while strong contributions were made by some of Remgro’s investee companies, considerable work still needed to be done to bed down the operational performance of a number of its key investments.
A driver of the decline in headline earnings related to the effect of the corporate actions implemented recently, most of which were non-recurring items, and amounted to R766m.
The difficult operating environment, particularly the trading results of Heineken Beverages Holdings, also contributed to the decline in headline earnings.
Total earnings fell to R1.24bn from R9.62bn a year ago, mainly due to the R1.4bn decrease in headline earnings due to the negative effect of corporate actions, the impairment of Remgro’s investment in Heineken Beverages (R4.26bn) and Remgro’s portion of the impairments of Heineken Beverages’ goodwill that was created through the Distell/Heineken transaction (R1.05bn).
The board declared a final dividend of 184c per share, taking the total dividend to 264c compared with 240c a year ago.
Remgro’s intrinsic net asset value per share increased by 1% to R251.01.
Since the May election and the subsequent establishment of the government of national unity (GNU), investor sentiment towards SA has improved and Remgro believes there is reason to be hopeful about improved economic prospects.
“While the group’s results for the year under review did not meet expectations, Remgro’s focus remains on disciplined capital allocation and actively partnering with management teams to drive sustainable performance at its underlying investee companies to deliver long-term value for its shareholders,” he said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Remgro increases dividend despite lower earnings
Chair Johann Rupert says the group remains focused on disciplined capital allocation
Remgro has increased its annual dividend by 10% despite its headline earnings falling almost 20% in what the investment holding company called a “challenging period”.
The group, which has investments in energy, healthcare, fibre, financial services, food and beverages, reported headline earnings decreased by 20% to R5.65bn in the year to end-June, and headline earnings per (HEPS) share fell 18.8% to 1,018c.
The difference between the HEPS measure and headline earnings represented the accretive impact of shares repurchased during the 2023 financial year and the beginning of the year under review, the group said in a statement on Thursday.
“The 2024 financial year was a challenging period with the continued focus on concluding and integrating a series of transformative corporate actions that still impact Remgro's results,” chairperson Johann Rupert said.
He added that while strong contributions were made by some of Remgro’s investee companies, considerable work still needed to be done to bed down the operational performance of a number of its key investments.
A driver of the decline in headline earnings related to the effect of the corporate actions implemented recently, most of which were non-recurring items, and amounted to R766m.
The difficult operating environment, particularly the trading results of Heineken Beverages Holdings, also contributed to the decline in headline earnings.
Total earnings fell to R1.24bn from R9.62bn a year ago, mainly due to the R1.4bn decrease in headline earnings due to the negative effect of corporate actions, the impairment of Remgro’s investment in Heineken Beverages (R4.26bn) and Remgro’s portion of the impairments of Heineken Beverages’ goodwill that was created through the Distell/Heineken transaction (R1.05bn).
The board declared a final dividend of 184c per share, taking the total dividend to 264c compared with 240c a year ago.
Remgro’s intrinsic net asset value per share increased by 1% to R251.01.
Since the May election and the subsequent establishment of the government of national unity (GNU), investor sentiment towards SA has improved and Remgro believes there is reason to be hopeful about improved economic prospects.
“While the group’s results for the year under review did not meet expectations, Remgro’s focus remains on disciplined capital allocation and actively partnering with management teams to drive sustainable performance at its underlying investee companies to deliver long-term value for its shareholders,” he said.
mackenziej@arena.africa
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