South African food producer Premier Group has posted a near 40% jump in annual profit despite increasing commodity prices and rising inflation.
The company reported a headline earnings per share – the main profit measure in South Africa – of 634 cents for the year ended 31 March, up from 453 cents a year earlier.
Like other food producers, the maker of Blue Ribbon bread and Snowflake flour has had to endure soaring inflation and incessant power cuts.
Food and nonalcoholic beverages inflation for April increased by 13.9% year on year, according to government statistics.
The group’s revenue increased by 23.4% year-on-year to R17.9 billion (€870 million), driven by increases in revenue in both the Millbake and the groceries and international categories of 25.4% and 14.5%, respectively, the company noted.
Power Cuts
The company has, however, managed to mitigate the effects of South Africa's worst rolling blackouts on record which leaves households and businesses in the dark for up to 10 hours daily, it said in a statement.
'Loadshedding continues to impose multiple operational challenges ... but despite indications that load shedding will persist for the remainder of the year, future performance of the group is not expected to be materially impacted,' the company, which listed on the local bourse in March, said referring to the power cuts.
Premier Group hopes to continue delivering investment returns to its shareholders and make a difference in the everyday lives of its consumers.
The company's strategic priorities include improved distribution, product availability and forward share management as it seeks to increase market penetration. It will also focus on innovation and product renovation to strengthen product margins and brand equity.
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