Shares of Premier Group Rise by 8% due to Upbeat Earnings Forecast

The share price of food producer Premier Group jumped by more than 8% on Monday afternoon after the release of its trading statement for the fiscal year ending on March 31, 2025.

Having listed on the JSE two years ago, the company anticipates that headline earnings per share will rise between 20% and 30%, translating to 893 cents to 967 cents.

Read: Brait benefits from Premier performance [Nov 2024]

Premier Group is known for producing brands such as Blue Ribbon bread, Iwisa maize meal products, Mr Sweet, and Snowflake flour.

In a trading update released on Sens, the company states it anticipates mid-single-digit revenue growth during the review period, despite challenges posed by high interest rates, limited consumer spending, and fluctuating soft commodity prices.

Just last week, the South African Reserve Bank decided to maintain its benchmark repo rate at 7.5% following the Monetary Policy Committee (MPC) meeting.

According to Premier Group, the rise in operational earnings is attributed to ongoing efforts in margin management, cost-saving measures, and optimizing operational efficiencies across manufacturing, logistics, and distribution networks.

A year prior

In the year ending March 2024, the group reported a 3.6% year-on-year revenue increase to R18.6 billion, while headline earnings per share rose by 17.4% to 743 cents.

Read: Premier’s shares surge due to double-digit profit growth [Jun 2024]

“The shift to single-digit revenue growth was anticipated due to the impact of considerable soft commodity inflation last year and its subsequent stabilization,” said CEO Kobus Gertenbach.

Premier Group plans to release its financial results for the year ending March 31, 2025, around June 10.

Stay updated with Moneyweb’s comprehensive finance and business news on WhatsApp here.