Blue Ribbon owner Premier Foods reports strong results despite 2024's high maize prices

Shares in Premier Foods rose over 4% on Tuesday after the Group reported its results for the year to end-March 2025.

The owner of well-known brands like Snowflake, Iwisa and Blue Ribbon reported that operating profit increased by 16.9% to R1.9 billion.

The Group was included in the FTSE/JSE All Share Index in September 2024.

Revenue increased by 7% to R19.9 billion, supported by revenue growth in both the Millbake and the Groceries and International divisions of 5.7% and 13.3%respectively.

Headline earnings per share (HEPS) shot up by 26.8% to 943 cents per share.

Premier declared a final gross dividend of 271 cents per share, up from 220 cents during the previous financial year.

The Group said it was through meticulous margin management and efficiencies, as well as a commitment to producing quality products at the lowest cost, that moderate revenue growth was leveraged into 'meaningful improvement in operational earnings'.

This was amid high maize prices, which Group CEO Kobus Gertenbach says impacted revenue.

"When prices really rocketed on the back of very dry farming conditions in southern Africa, and South Africa became the bread basket that fed a lot of our neighbours, we had to pay a lot more for raw maize and our consumers unfortunately also had to bear the brunt of it."

Kobus Gertenbach, CEO - Premier Group

"That also led to a decline in volumes, but luckily we're through that now; we've entered a new season and consumers have gotten significant relief from that."

Kobus Gertenbach, CEO - Premier Group

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