Page 179 - Profile's Stock Exchange Handbook - 2025 Issue 2

Registration number 1968/006415/06 | ISIN ZAE000026480 | JSE and A2X Share code REM
Summary of unaudited results

for the six months ended 31 December 2024 and cash dividend declaration
Salient features
Headline earnings Intrinsic net asset value Interim dividend Earnings per share
per share per share per share
a profit of
672 cents R276.89 96 cents 659 cents
(up by 38.6%) as at 31 December 2024 (up by 20.0%) (31 December 2023:
(up by 10.3% loss of 295 cents)
since 30 June 2024) (up by 323.4%)

Introduction – Remgro’s portion of transaction costs amounting to R165 million, which were incurred in respect of the
The first half of the 2025 financial year saw a positive trend in acquisition, through Remgro’s 50% interest in Manta Bidco Limited, which is jointly owned by Remgro
delivering against Remgro’s stated strategic focus of disciplined and MSC Mediterranean Shipping Company SA of the entire issued ordinary share capital of Mediclinic
(the Mediclinic acquisition), for the six months ended 31 December 2023 (comparative period).
capital allocation and active partnership to drive performance
in its underlying portfolio companies. This is evidenced by the Total earnings amounted to a profit of R3 658 million (restated 31 December 2023: a loss of R1 638 million).
marked improvements in earnings contributions across the This increase in earnings is mainly due to the increase in headline earnings discussed above (R1 041 million),
portfolio. Whilst the steadfast focus on unlocking performance the impairment of Remgro’s investment in Heineken Beverages in the comparative period (R4 257 million) and
within the portfolio and integrating the series of corporate Remgro’s portion of the impairments of Heineken Beverages’ goodwill that was created through the Distell/
actions that have continued to affect Remgro’s results continues, Heineken transaction in the comparative period (R1 050 million). The increase was partly offset by profits realised
Remgro is pleased that these concerted efforts are bearing fruit. in the comparative period relating to the disposal of the investment in DC Foods Proprietary Limited, Remgro’s
Notwithstanding this progress, much work still needs to be done portion of the profit realised by RCL Foods on the disposal of its Vector Logistics business and Remgro’s portion
to further unlock and optimise the performance of the portfolio. of the profit realised by Capevin Holdings Proprietary Limited on the termination of the Gordon’s Gin agreement.
Remgro restated its previously published headline earnings and earnings for the comparative period. During
Looking more broadly, the period under review was still the finalisation of TotalEnergies’ annual financial statements for its year ended 31 December 2023, which
characterised by a degree of global macroeconomic and happened after the publication of Remgro’s 31 December 2023 interim results, it was determined that the
geopolitical instability. In contrast, the local operating fair value of its disposal group, being mainly its investment in Natref, was initially incorrectly accounted for.
environment continued to show signs of moderation, fuelled by Further detail is disclosed in Remgro’s unaudited interim results for the six months ended 31 December 2024.
improved investor and consumer confidence, ongoing traction
on political reform and a positive trend in key economic Intrinsic net asset value
indicators. This has, and continues to give the Group the impetus Remgro’s intrinsic net asset value per share increased by 10.3% from R251.01 at 30 June 2024 to R276.89 at
to focus on the things within its control, with our immediate priority 31 December 2024. Remgro also paid a final dividend for the year ended 30 June 2024 of 184 cents per share
remaining the focus on disciplined capital allocation and driving during November 2024. The closing share price at 31 December 2024 was R155.10 (30 June 2024: R136.09),
sustainable performance in the underlying portfolio companies. representing a discount of 44.0% (30 June 2024: 45.8%) to the intrinsic net asset value.
Results Declaration of cash dividend no. 49
For the period under review, headline earnings increased by Notice is hereby given that an interim gross dividend of 96 cents (31 December 2023: 80 cents) per share has
38.7% from the restated R2 687 million to R3 728 million, while been declared out of income reserves in respect of both the ordinary shares of no par value and the unlisted
headline earnings per share (HEPS) increased by 38.6% from B ordinary shares of no par value, for the six months ended 31 December 2024.
the restated 485 cents to 672 cents. The increase in headline The Board is satisfied that the Company is solvent and liquid, thus confirming that the Company has sufficient
earnings can be summarised as follows: capital and reserves after the payment of the interim dividend, to support its operations for the foreseeable future.
• Much improved operational performances from the majority A dividend withholding tax of 20% or 19.20 cents per share will be applicable, resulting in a net dividend of
of the investee companies, of which the most significant are: 76.80 cents per share, unless the shareholder concerned is exempt from paying dividend withholding tax or is
– increased contributions from Rainbow Chicken Limited entitled to a reduced rate in terms of an applicable double-tax agreement.
(+R237 million), RCL Foods Limited (RCL Foods) The issued share capital at the declaration date is 529 217 007 ordinary shares and 39 056 987 B ordinary shares.
(+R224 million), OUTsurance Group Limited (+R195 million) The income tax number of the Company is 9500-124-71-5.
and Mediclinic Group Limited (Mediclinic) (excluding the Dates of importance:
Mediclinic acquisition costs – refer below) (+R152 million)
due to improved operational performances; Last day to trade in order to participate in the dividend Monday, 14 April 2025
– Heineken Beverages Holdings Limited (Heineken Shares trade ex dividend Tuesday, 15 April 2025
Beverages) (excluding the Heineken IFRS 3 impact – Record date Thursday, 17 April 2025
refer below) returning to profitability, driven by volume Payment date Tuesday, 22 April 2025
growth and margin recovery (+R274 million); Share certificates may not be dematerialised or rematerialised between Tuesday, 15 April 2025, and Thursday,
– partly offset by lower contributions from TotalEnergies 17 April 2025, both days inclusive.
Marketing South Africa Proprietary Limited
(TotalEnergies) (-R331 million), mainly due to higher In terms of the Company’s Memorandum of Incorporation, dividends will only be transferred electronically to
negative stock revaluations, and Community Investment the bank accounts of shareholders. In the instance where shareholders do not provide the Transfer Secretaries
Ventures Holdings Proprietary Limited (-R147 million), with their banking details, the dividend will not be forfeited but will be marked as “unclaimed” in the share
mainly due to increased borrowing costs due to higher register until the shareholder provides the Transfer Secretaries with the relevant banking details for payout.
average debt balances and a negative fair value Directors’ statement
adjustment on an interest rate hedge. The directors, who take responsibility for the contents of this short-form announcement, present the unaudited
• Lower finance costs due to the redemption of the preference interim results of Remgro for the six months ended 31 December 2024.
shares (+R226 million). The financial information in this results announcement is a summary only and does not contain full details
• The impact of significant corporate actions implemented of the consolidated financial results. Accordingly, any investment decisions should be based on information
during the previous financial years decreasing to R77 million contained in the unaudited interim results for the six months ended 31 December 2024, which have been
(31 December 2023: R343 million), which include the following: released on SENS and are available on the Company’s website at www.remgro.com.
– Remgro’s portion of the IFRS 3 amortisation and depreciation Signed on behalf of the Board of Directors.
charges amounting to R77 million (31 December 2023:
R178 million) relating to the additional assets identified Johann Rupert Jannie Durand
when Heineken Beverages obtained control over Chairman Chief Executive Officer
Distell Group Holdings Limited (Distell) and Namibia Stellenbosch
Breweries Limited (Namibia Breweries) (the Distell/ Approved by the Board: 24 March 2025
Heineken transaction) (Heineken IFRS 3 impact); and SENS release date: 25 March 2025
Directorate Corporate information
Non-executive directors Secretary Transfer Secretaries
Johann Rupert (Chairman), L J Joubert Computershare Investor Services Proprietary Limited,
F Robertson* (Deputy Chairman), Listings Rosebank Towers,15 Biermann Avenue, Rosebank 2196
S E N De Bruyn*, N P Mageza*, J Malherbe, Primary listing – JSE Limited (Private Bag X9000, Saxonwold 2132)
P J Moleketi*, M Morobe*, P J Neethling,
G G Nieuwoudt*, K S Rantloane*, A E Rupert Sector: Financials – Financial Services – Investment Banking Auditors
(* Independent) and Brokerage Services – Diversified Financial Services Ernst & Young Inc.
Secondary listing – A2X Cape Town, South Africa
Executive directors
J J Durand (Chief Executive Officer), Business address and registered office Sponsor
M Lubbe, N J Williams, C P F Vosloo Millennia Park, 16 Stellentia Avenue, Stellenbosch 7600 Rand Merchant Bank (A division of FirstRand Bank Limited)
(Alternate to J J Durand) (PO Box 456, Stellenbosch 7599)
#18820 For more information: www.remgro.com
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