PREMIER GROUP LIMITED Trade Ideas — JSE:PMR

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.

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 offer (IPO) and separately listed on 24th March 2023, raising R3.6 billion at a share price of 5382c per share. Brait retained 47.1% of Premier. The company has successfully mitigated the impact of load shedding on its operations, with the associated costs not having a material impact on its financial performance. In its results for the year to 31st March 2024, the company reported revenue up 3.6% and headline earnings per share (HEPS) up 17.4%. The company said, "Both the Millbake and the Groceries and International categories contributed to the growth, increasing by 3.7% and 3.3% respectively. The softening to single-digit revenue growth was expected given the impact of significant soft commodity inflation in the prior year and its subsequent stabilization." Since it listed on 24th March 2023, the share has been drifting sideways and slightly up. However, it is very early days, and no meaningful technical analysis is yet possible. We expect this share to be a blue-chip quality operation that is sought after by institutional investors, making it a solid, if unexciting, investment for private investors. The company's ability to manage operational challenges such as load shedding and the growth in its key segments suggests that Premier has strong fundamentals and potential for steady, long-term growth.

Our opinion on the current state of PMR Premier, a prominent food producer, marked its entry into the public market through an initial public offering (IPO) on 24th March 2023, successfully raising R3.6 billion at a share price of 5382c per share. This strategic move, which saw it spun out from Brait (BAT), positioned Premier as an independent entity on the stock exchange, with Brait retaining a 47.1% stake in the company. Premier's successful management of loadshedding's impacts on its operations, without significant financial repercussions, demonstrates its operational resilience and efficient crisis management capabilities. For the fiscal year ending 30th September 2023, Premier reported a 7.1% increase in revenue alongside a modest 0.8% rise in headline earnings per share (HEPS). These figures underscore the challenging trading environment characterized by currency fluctuations, soft commodity volatility, extensive infrastructural constraints, and high interest rates. The consumer sector's significant stress, exacerbated by a low-growth economy, has posed additional challenges to Premier's operational context. In a trading update for the year ending 31st March 2024, Premier reiterated its revenue growth of 7.1% and an identical 0.8% increase in HEPS, highlighting a strategic focus on margin maintenance amid moderated revenue growth to low single-digit figures. This approach reflects Premier's commitment to operational efficiency and financial stability in a challenging market. Since its listing in March 2023, Premier's share price has shown a trend of sideways to slight upward movement, though it remains too early for extensive technical analysis or definitive market performance assessments. The expectation that Premier will establish itself as a blue-chip operation, attracting institutional investors, suggests a positive outlook for private investors considering this stock. Premier's operational resilience, strategic market positioning, and focused management approach position it as a potentially solid investment in the South African food production sector, despite the prevailing economic and operational challenges.

Our opinion on the current state of PMR Premier is a food producer which was spun out of Brait (BAT) through an initial public offer (IPO) and separately listed on 24th March 2023 which raised R3,6bn at a share price of 5382c per share. Brait retained 47,1% of Premier. Premier has managed to mitigate the impact of loadshedding on its operations, the costs of which were not a material impact on its financial performance. In its results for the year to 30th September 2023 the company reported revenue up 7,1% and headline earnings per share (HEPS) up by 0,8%. The company said, "The trading environment has been characterised by currency and soft commodity volatility, extensive infrastructural constraints and high interest rates. The consumer remains under significant stress which has been compounded by the low growth economy..." Since it listed on 24th March 2023 the share has been drifting sideways, but it is very early days and no meaningful technical analysis is yet possible. We expect this share to be a blue chip quality operation which is sought after by institutional investors - and hence a solid investment for private investors.

PREMIER GROUP LIMITED

PMR trade ideas