Premier Group Limited (JSE:PMR) reported revenue growth of 39% to R14.3 billion for the six months ended September 30, 2026, presenting its interim results on November 10, 2026. The South African food producer, whose operations extend into Eswatini, credited the first full half-year contribution of its newly acquired Culinary division for much of the gain.
Headline earnings per share rose 27% to 711 cents, within the company's own guidance range of 22% to 32% growth, and the share price climbed 7.04% to R19,337, approaching its 52-week high of R19,739, according to Investing.com.
Strong margins despite a difficult environment
The results were achieved against a backdrop few businesses in the region would envy: civil unrest linked to anti-immigration protests, severe fuel price increases, and volatile commodity prices. Premier absorbed more than R20 million in additional monthly costs from fuel alone and applied selective price increases in April to protect its margins.
Grain prices worked in the company's favour, with maize deflation of 20% and wheat deflation of 5% recorded during the period. Net profit climbed 62% to R1.2 billion, lifting the net margin to 8.1% from 7.0%. EBITDA surged 51% to R2.0 billion, with the EBITDA margin expanding 120 basis points to 13.9%.
What the Culinary acquisition delivered
The Culinary division, built from the RFG Holdings transaction completed in March, contributed to the Groceries division for the first full half-year. Business Day reported that the 38.8% revenue increase was driven largely by the inclusion of RFG Holdings, which now operates as Premier Culinary within the groceries division.
The division holds commanding market positions in South African retail: 78% of canned meats and meals, 49% of retail pies, 48% of retail pastry, and 31% of jam. Brands include Rhodes Quality, Bull Brand, Hinds Spices, and Today.
Integration progressed on schedule, with merchandising consolidated on July 1 and the Fresh and Long Life supply chains combined by September 15. Expected cost savings of R100 million to R150 million remain on track, with full benefits anticipated in 2028 once ERP systems are fully aligned.
A regional giant with roots in Eswatini
Premier operates 45 manufacturing sites and 28 distribution depots across South Africa, Lesotho, Eswatini, and Mozambique, employing more than 12,000 permanent and contracted workers. Its annual production capacity includes 845 million loaves of bread, 550 million cans of food, and processing of over 1 million tonnes of wheat and 680,000 tonnes of maize.
The Millbake division, which contributes 66% of revenue, grew bread market share to 29% from 27%, anchored by the Blue Ribbon and Snowflake brands familiar to households across the region. Wheat market share stood at 36%, while maize share increased to 17% from 15%.
Investment for the long term
Capital expenditure reached R759 million, or 5.3% of revenue, up from R510 million a year earlier. The company commissioned a new bakery line in Middelburg capable of 8,000 loaves per hour and opened the Lords View 3 distribution center to expand capacity for Culinary products. Management guided that annual capital spending of approximately R1.5 billion will continue through 2028 and 2029.
Shareholder returns were not neglected. The company returned R513 million through R207 million in share buybacks and R306 million in dividends, while reducing net debt to R2.3 billion at a leverage ratio of 0.7x, consistent with levels before the RFG acquisition.
Challenges ahead
Not everything ran smoothly. More than 400 spaza shops in KwaZulu-Natal remained closed following the unrest, disrupting the informal route to market. Management said it expects the route to market to change rather than demand to disappear, with the flexibility to shift supply toward formal retail.
The closure of the Tulbagh fruit canning plant advanced, with 403 voluntary separation agreements signed at a cost of roughly R40 million and settlement agreements with about 82 farmers for peach orchard removal at approximately R67 million. BusinessTech reported that the company is exploring alternatives to the major factory shutdown.
Management also flagged grain price deflation persisting through year-end, with El Niño inflationary effects expected only from April 2028, and noted that the Middle East conflict will continue to pressure consumers.
Frequently asked questions
What revenue did Premier Group report for H1 2027?
Premier Group reported revenue of R14.3 billion for the six months ended September 30, 2026, an increase of 39% year on year.
How much did headline earnings per share grow?
Headline earnings per share grew 27% to 711 cents, within the company's guidance range of 22% to 32%.
Does Premier Group operate in Eswatini?
Yes. Premier's manufacturing and distribution network spans South Africa, Lesotho, Eswatini, and Mozambique, with 45 manufacturing sites and more than 12,000 workers.
When will the Culinary acquisition synergies be fully realized?
Premier expects the full R100 million to R150 million in cost savings from the Culinary acquisition to materialize in 2028, following complete ERP integration.