Page 177 - Profile's Stock Exchange Handbook -2024 Issue 4

Summary of
Audited Results
for the year ended 30 June 2024 and cash dividend declaration Registration number 1968/006415/06
ISIN ZAE000026480
JSE and A2X Share code REM
Introduction Remgro’s 50% interest in Manta Bidco Limited,
he 2024 financial year was a challenging period which is jointly owned by Remgro and MSC Salient features
with the continued focus on concluding and Mediterranean Shipping Company SA (MSC),
Tintegrating a series of transformative corporate of the entire issued ordinary share capital of Ordinary dividend per share
actions that still impacts on Remgro’s results. While Mediclinic (the Mediclinic acquisition), as well as
strong contributions were made by some of Remgro’s a foreign exchange gain of R522 million relating to 264 cents
investee companies, considerable work still needs to the Mediclinic acquisition in the comparative year; (up by 10.0%)
be done to bed down the operational performance – Remgro’s portion of a debt forgiveness gain
of a number of its key investments. Remgro remains amounting to R227 million that was accounted Intrinsic net asset value
committed to the portfolio repositioning and for by Kagiso Tiso Holdings Proprietary Limited per share as at 30 June 2024
optimisation, enabled by the aforementioned corporate (KTH) in the comparative year (a lender waived
actions, and even as the current unsatisfactory its right to receive an outstanding amount R251.01
performance overshadows continued progress on of a loan to KTH) as part of the disposal of its
some of its key strategic initiatives, Remgro maintains investment in Actom Investment Holdings (up by 1.0%)
a disciplined and long-term approach in deploying and Proprietary Limited; and Headline earnings per share
managing its resources. – a dividend received from the Pembani Remgro
Infrastructure Fund of R358 million relating to its
Last year, Remgro listed some of the challenges faced disposal of the ETG Group in the comparative year. 1 018 cents
by South African businesses, notably the continuation (down by 18.8%)
of high interest rates, the disruption of business • Excluding the impact of the above-mentioned corporate
operations due to load shedding, local infrastructure actions, the muted headline earnings performance Earnings per share
and logistics related challenges due to geopolitical resulted from mixed operational performances from
instability, and exchange rate volatility. investee companies of which the most significant are: 224 cents
– Increased contributions from RCL Foods Limited,
Although some of these challenges persisted, there TotalEnergies Marketing South Africa Proprietary (down by 86.9%)
were some encouraging macroeconomic improvements, Limited, OUTsurance Group Limited, Siqalo
including an improvement in inflation, a substantial Foods Proprietary Limited and Air Products
reduction in load shedding and – more recently – a South Africa Proprietary Limited, due to improved Dates of importance
reduction in fuel prices. The difficult business environment operational performances;
was compounded by the political uncertainty leading – an increased loss contributed by Heineken Last day to trade in order to Tuesday,
up to the national elections in May. Since then, and Beverages (excluding the Heineken IFRS 3 participate in the dividend 12 November 2024
the subsequent establishment of the Government of impact) of R297 million, partly offset by a higher Shares trade Wednesday,
National Unity (GNU), investor sentiment towards South contribution from Capevin Holdings Proprietary ex dividend 13 November 2024
Africa has improved and we too believe there is reason to Limited of R65 million, compared to Distell’s Friday,
be hopeful about improved economic prospects. contribution of R751 million (excluding the Record date 15 November 2024
While the Group’s results for the year under review did not transaction costs) in the comparative year; and Monday,
meet expectations, Remgro’s focus remains on disciplined – a lower contribution from Community Investment Payment date 18 November 2024
capital allocation and actively partnering with management Ventures Holdings Proprietary Limited mainly due
teams to drive sustainable performance at its underlying to higher finance costs resulting from increased Share certificates may not be dematerialised or
investee companies in order to deliver long-term value for interest rates and higher security and maintenance rematerialised between Wednesday, 13 November 2024,
its shareholders. costs to ensure high network uptime. and Friday, 15 November 2024, both days inclusive.
Results Total earnings amounted to R1 241 million (2023: In terms of the Company’s Memorandum of Incorporation,
For the year under review, headline earnings decreased R9 624 million). This decrease in earnings is mainly due dividends will only be transferred electronically to the
by 20.0% from R7 056 million to R5 647 million, while to the decrease in headline earnings discussed above bank accounts of shareholders. In the instance where
headline earnings per share (HEPS) decreased by 18.8% (R1 409 million), the impairment of Remgro’s investment shareholders do not provide the Transfer Secretaries with
from 1 254 cents to 1 018 cents. The difference of 120bps in Heineken Beverages (R4 257 million) and Remgro’s their banking details, the dividend will not be forfeited but
in the HEPS measure compared to headline earnings, portion of the impairments of Heineken Beverages’ will be marked as “unclaimed” in the share register until
represents the accretive impact of shares repurchased goodwill that was created through the Distell/Heineken the shareholder provides the Transfer Secretaries with the
during the 2023 financial year and the beginning of the transaction (R1 050 million). For the 2023 financial relevant banking details for payout.
year under review. year, Remgro accounted for a profit on disposal of
R3 384 million in respect of the Distell/Heineken transaction. Directors’ responsibility statement
A significant driver of the decline in headline earnings This short-form announcement is the responsibility of the
relates to the effect of the corporate actions implemented Intrinsic net asset value Board of Directors of Remgro.
in the recent past, the majority of which are non-recurring Remgro’s intrinsic net asset value per share increased
items. The difficult operating environment, particularly by 1.0% from R248.47 at 30 June 2023 to R251.01 at Consolidated Annual Financial Statements
in relation to the trading results of Heineken Beverages 30 June 2024. The closing share price at 30 June 2024 (AFS) and summary consolidated results
Holdings Limited (Heineken Beverages), also contributed was R136.09 (2023: R147.05), representing a discount of The financial information in this short-form
to the material decline in headline earnings. The decrease 45.8% (2023: 40.8%) to the intrinsic net asset value. announcement is a summary only and does not contain
in headline earnings can be summarised as follows: Declaration of cash dividend no. 48 full details of the consolidated annual financial results.
• The negative impact of significant corporate actions Notice is hereby given that a final gross dividend of Accordingly, any investment decisions should be
implemented throughout the Group amounting to 184 cents (2023: 160 cents) per share has been declared based on information contained in the consolidated
R766 million (2023: positive impact of R581 million), out of income reserves in respect of both the ordinary AFS and the summary consolidated results, which have
been released on SENS.
which include the following: shares of no par value and the unlisted B ordinary shares
– Remgro’s portion of IFRS 3 amortisation and of no par value, for the year ended 30 June 2024. The consolidated AFS and the summary consolidated
depreciation charges amounting to R257 million results were audited by Ernst & Young Inc., who issued
(2023: R56 million) relating to the additional assets The Board is satisfied that the Company is solvent and unmodified audit opinions thereon. The consolidated
identified when Heineken Beverages obtained liquid, thus confirming that the Company has sufficient AFS and the summary consolidated results, which include
control over Distell Group Holdings Limited capital and reserves after the payment of the final dividend, the respective auditor’s reports, are available on the
Company’s website at www.remgro.com.
(Distell) and Namibia Breweries Limited (the to support its operations for the foreseeable future.
Distell/Heineken transaction) (Heineken IFRS 3 A dividend withholding tax of 20% or 36.80 cents per share Integrated Annual Report
impact), as well as Remgro’s portion of transaction will be applicable, resulting in a net dividend of 147.20 cents The Integrated Annual Report will be mailed to those
costs amounting to R196 million, which were per share, unless the shareholder concerned is exempt from shareholders who requested to receive a hard copy and
incurred by Distell in the comparative year; paying dividend withholding tax or is entitled to a reduced will be available on the website during October 2024.
– Remgro’s portion of an increase in a redemption rate in terms of an applicable double-tax agreement.
liability amounting to R344 million (2023: decrease The total gross dividend per share for the year ended Signed on behalf of the Board of Directors.
in liability of R338 million), relating to Mediclinic 30 June 2024 therefore amounts to 264 cents, compared
Group Limited’s (Mediclinic) acquisition of to 240 cents for the year ended 30 June 2023. Johann Rupert Jannie Durand
Chief Executive Officer
Hirslanden La Colline Grangettes SA; Chairman
– Remgro’s portion of transaction costs amounting The issued share capital at the declaration date is Stellenbosch
to R165 million (2023: R612 million), which were 529 217 007 ordinary shares and 39 056 987 B ordinary shares. Approved by the Board: 18 September 2024
incurred in respect of the acquisition, through The income tax number of the Company is 9500-124-71-5. SENS release date: 19 September 2024
Directorate Corporate information
Non-executive directors Secretary Transfer Secretaries
Johann Rupert (Chairman), F Robertson* (Deputy Chairman), D I Dreyer Computershare Investor Services Proprietary Limited,
S E N De Bruyn*, N P Mageza*, J Malherbe, P J Moleketi*, Rosebank Towers, 15 Biermann Avenue, Rosebank 2196
M Morobe*, P J Neethling, G G Nieuwoudt*, Listings (Private Bag X9000, Saxonwold 2132)
K S Rantloane*, A E Rupert Primary listing – JSE Limited
(* Independent) Sector: Financials – Financial Services – Investment Banking Auditors
and Brokerage Services – Diversified Financial Services Ernst & Young Inc.
Executive directors Secondary listing – A2X Cape Town, South Africa
J J Durand (Chief Executive Officer), M Lubbe,
N J Williams, C P F Vosloo (Alternate to J J Durand) Business address and registered office Sponsor
Millennia Park, 16 Stellentia Avenue, Stellenbosch 7600 Rand Merchant Bank (A division of FirstRand
(PO Box 456, Stellenbosch 7599) Bank Limited)
For more information
ww.remgro.com
2024/10/11 12:01
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