Diversified investment holding company Remgro has announced strong results for the financial year ended June 30, supported by sustained momentum in the group’s underlying portfolio of investee companies, together with consistent execution against its stated strategic objective of disciplined capital allocation and active partnership.

This has resulted in continued improvements in earnings contributions across the portfolio, with more than 80% of Remgro’s portfolio achieving growth in headline earnings for the period.

Remgro’s headline earnings increased by 38.6% year-on-year to R7.83-billion, while headline earnings per share (HEPS) increased by 38.4% to R14.09.

The increase in headline earnings was the result of improved operational performances from the majority of investee companies, with significant increased contributions coming from Mediclinic Group, OUTsurance Group, Rainbow Chicken and RCL Foods, owing to improved operational performances.

Also, Heineken Beverages Holdings returned to profitability, driven by volume growth and margin recovery.

This was partly offset by lower contributions from TotalEnergies Marketing South Africa, mainly owing to higher negative stock revaluations and lower dividends from Momentum Group following its disposal.

Finance costs were also lower year-on-year owing to the redemption of preference shares.

For the period under review, the negative impact of significant corporate actions, which were implemented during the previous financial years, amounted to R140-million.

Total earnings of R3.30-billion increased from the R1.24-billion reported for the prior financial year, owing to the increase in headline earnings outlined, the impairment of Remgro’s investment in Heineken Beverages in the 2024 financial year and Remgro’s portion of the impairment of Heineken Beverages’ goodwill that was created through the Distell/Heineken transaction in the 2024 financial year.

The increase was partially offset by Remgro’s portion of the impairment of Mediclinic’s assets in Switzerland; the impairment of Remgro’s investment in eMedia Investments; Remgro’s portion of the impairment of Capevin Holdings goodwill; the profit realised in the prior year relating to the disposal of the investment in DC Foods; Remgro’s portion of the profit realised by RCL Foods on the disposal of its Vector Logistics business; and Remgro’s portion of the profit realised by Capevin on the termination of the Gordon’s Gin agreement.

Remgro’s intrinsic net asset value per share increased by 16.5% year-on-year to R292.34 as at June 30.

Remgro has declared a gross ordinary dividend a share for the year of 344c, compared with the dividend of 264c reported for the prior year.

Following the disposal of Remgro’s investment in BAT, the board has also declared a special dividend a share of 200c.

“Looking ahead, Remgro will continue to navigate the prevailing global and local macro uncertainty through unwavering focus on driving returns through close partnership with our management teams and disciplined execution from our portfolio of quality assets.

“Our strategy of sharpening and simplifying the Remgro portfolio will remain key to unlocking the intrinsic value of the group. We will continue to look for ways to further enhance this through seeking out capital allocation opportunities that create and unlock sustainable value for our shareholders,” CEO Jannie Durand says.