Our opinion on the current state of PREMIER(PMR)Premier is a food producer that was spun out of Brait (BAT) through an initial public offering (IPO) and separately listed on 24th March 2023. The IPO raised R3.6 billion at a share price of 5382c per share, with Brait retaining a 47.1% stake in Premier. Despite challenges, Premier has successfully mitigated the impact of loadshedding on its operations, and the associated costs did not significantly affect its financial performance.
In its results for the year ending 31st March 2024, Premier reported revenue growth of 3.6% and headline earnings per share (HEPS) up 17.4%. The company attributed this growth to both the Millbake and Groceries and International categories, which saw revenue increases of 3.7% and 3.3%, respectively. Premier noted that the softening to single-digit revenue growth was expected due to the significant soft commodity inflation in the prior year and its subsequent stabilization.
In a trading statement for the six months ending 30th September 2024, Premier estimated that HEPS would increase by between 25% and 33%. The improvement in operational earnings was driven by margin management, cost-saving initiatives, and the delivery of material operational efficiencies.
Following its listing in March 2023, the share price initially moved sideways and slightly upward. However, since July 2024, the share has risen steeply. Premier is expected to be a blue-chip operation, attracting institutional investors, making it a solid, though not particularly high-growth, investment for private investors.
Premier was added to the Winning Shares List (WSL) on 21st August 2024 at 7635c, and it has since risen to 10617c, demonstrating strong upward momentum.
