Remgro has reported a 38.7% rise in headline earnings at the halfway stage of the financial year, boosted by improved operational performances from the majority of the investee companies, most notably Rainbow Chicken, RCL Foods, Outsurance and Mediclinic.
Headline earnings per share (HEPS) for the six months ended December rose to 672c, while earnings per share (EPS) were up 323.4% to 659c. Remgro declared an interim dividend of 96c.
Total earnings amounted to a profit of R3.658bn from a restated loss of R1.638bn previously.
Intrinsic net asset value per share was up 10.3% to R276.89 at end-December from R251.01 at the end of June.
The conglomerate, whose interests range from private healthcare to financial services and consumer foods to internet infrastructure, said it had seen a positive trend in delivering against its strategic focus of disciplined capital allocation and active partnership to drive performance in its underlying portfolio companies.
“While the steadfast focus on unlocking performance within the portfolio and integrating the series of corporate actions that have continued to affect Remgro's results continues, Remgro is pleased that these concerted efforts are bearing fruit,” it said.
Notwithstanding this progress, much work still needs to be done to further unlock and optimise the performance of the portfolio, it added.
The group noted increased contributions from Rainbow Chicken (R237m), RCL Foods (R224m), Outsurance Group (R195m) and Mediclinic Group (R152m) due to improved operational performances.
Heineken Beverages Holdings returned to profitability, driven by volume growth and margin recovery.
There were lower contributions from TotalEnergies Marketing SA, mainly due to higher negative stock revaluations, and Community Investment Ventures Holdings, mainly due to increased borrowing costs due to higher average debt balances and a negative fair value adjustment on an interest rate hedge.
The group also benefited from lower finance costs due to the redemption of the preference shares and the effects of corporate actions implemented during the previous financial years.
Remgro said it would continue to focus on the things within its control, with the immediate priority remaining the focus on disciplined capital allocation and driving sustainable performance in the underlying portfolio companies.
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