Remgro expects to report higher full-year earnings due to improved operational performances from the majority of its investee companies and lower finance costs.
Johann Rupert’s investment holding company expects to report a 33%-43% increase in headline earnings per share (HEPS) for the year ended June to between R13.54 and R14.56, it said on Wednesday.
It is due to report its full-year earnings on September 23.
Remgro reported a 38.7% rise in headline earnings at the halfway stage of the financial year, boosted by improved operational performances by the majority of its investee companies.
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.
The group noted increased contributions by Rainbow Chicken, RCL Foods, Outsurance and Mediclinic due to improved operational performances. Heineken Beverages Holdings returned to profitability, driven by volume growth and margin recovery.
The group also benefited from lower finance costs at the halfway stage due to the redemption of the preference shares and the effects of corporate actions implemented during the previous financial years.
The company’s shares were up 1.28% at R170.65, giving it a market valuation of R90.3bn. Year to date its shares are up 11.4%.
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