Premier Group has delivered a sharp increase in earnings for the six months to September 30, 2026, with net profit rising 62.1% to R1.17 billion as the food producer benefited from its acquisition of RFG Holdings and improved operating efficiencies across its business.
The maker of Blue Ribbon bread reported revenue of R14.3 billion, up 38.8% from the corresponding period last year, while operating profit climbed 52.5% to R1.69 billion. EBITDA increased 51.4% to R2 billion, with the EBITDA margin improving to 13.9% from 12.7% a year earlier.
Culinary business integration is progressing well
The results marked the first interim reporting period to include the contribution of RFG Holdings, which Premier acquired in March 2026 and now operates as its culinary business within the groceries division. The company said integration of the businesses was progressing according to plan, with merchandising and supply chain integration completed and ERP integration under way. Merger-related synergies were already being realised in procurement, distribution, sales and systems alignment.
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Expansion into ready meals
Millbake remains the earnings engine
Premier’s Millbake division, which accounts for roughly two-thirds of group revenue, increased revenue by 1.3% to R9.4 billion despite maize price deflation of 20% and wheat price deflation of 5%. EBITDA from the division grew 23.7% to R1.58 billion, while the EBITDA margin improved to 16.8% from 13.8% in the previous comparable period.
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The company said investments in new bakeries at Aeroton in Gauteng and Middelburg in Mpumalanga, together with improvements in logistics and distribution infrastructure, boosted efficiency and supported growth in inland markets. The new facilities are replacing older bakeries, with the Hermanstad bakery already closed and the Potchefstroom bakery due to close following commissioning of the new sites.
Culinary acquisition lifts groceries
The groceries division benefited significantly from the inclusion of the culinary business. Revenue increased to R4.9 billion while EBITDA rose to R513 million, resulting in an EBITDA margin of 10.4%.
Premier said fresh products performed strongly, helped by opportunities to expand its pies and pastries offering, while long life products delivered a solid performance despite challenges arising from the closure of the Tulbagh fruit processing facility. The company expects additional benefits from supply chain integration, merchandising alignment and procurement savings in the months ahead.
Premier said the prolonged conflict in the Middle East had also contributed to higher fuel costs and pressure on consumer disposable income, although the company sought to offset some of the impact through targeted pricing interventions and continuous business improvement initiatives.
Strong cash generation and balance sheet
Cash generated from operations improved 43% to R1.8 billion, supported by higher earnings and contributions from the culinary business. The company spent R759 million on capital expenditure, including investments in bakeries, depots and distribution facilities.
Premier also repurchased shares worth R207 million during the period and made voluntary debt repayments of R234 million. Despite the debt assumed through the RFG acquisition, the group’s leverage ratio remained unchanged at 0.7 times. Net debt stood at R2.3 billion at the end of September.
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Basic earnings per share rose 27.5% to 711 cents, while headline earnings per share increased 27.1% to the same level.
Looking ahead, Premier said merger-related benefits were expected to accelerate in the second half of the financial year as integration progresses and supply chain synergies gain momentum. The company also expects grain prices to remain deflationary for the remainder of the current financial year, before the inflationary impact of El Niño weather patterns begins to emerge.
Management said increasing cash generation would be directed towards funding capital expenditure, reducing debt and pursuing further share buybacks, adding that the enlarged group was well positioned to deliver sustainable growth and shareholder value.
- Premier Group's net profit for the six months to September 30, 2026, rose 62.1% to R1.17 billion, with revenue increasing 38.8% to R14.3 billion following the acquisition of RFG Holdings.
- Operating profit climbed 52.5% to R1.69 billion, and EBITDA increased 51.4% to R2 billion, improving the EBITDA margin from 12.7% to 13.9%.
- The acquisition of RFG Holdings expanded Premier's portfolio into ready meals, pies, dairy products, and other groceries, boosting the groceries division's revenue to R4.9 billion and EBITDA to R513 million.
- Millbake, Premier's largest division, grew revenue by 1.3% to R9.4 billion and increased EBITDA by 23.7% to R1.58 billion, with a margin improvement to 16.8%.
- Cash generated from operations rose 43% to R1.8 billion, with capital expenditure of R759 million and a net debt of R2.3 billion, while the leverage ratio remained at 0.7 times.
Premier Group has delivered a sharp increase in earnings for the six months to September 30, 2026, with net profit rising 62.1% to R1.17 billion as the food producer benefited from its acquisition of RFG Holdings and improved operating efficiencies across its business.
The maker of Blue Ribbon bread reported revenue of R14.3 billion, up 38.8% from the corresponding period last year, while operating profit climbed 52.5% to R1.69 billion. EBITDA increased 51.4% to R2 billion, with the EBITDA margin improving to 13.9% from 12.7% a year earlier.
The results marked the first interim reporting period to include the contribution of RFG Holdings, which Premier acquired in March 2026 and now operates as its culinary business within the groceries division. The company said integration of the businesses was progressing according to plan, with merchandising and supply chain integration completed and ERP integration under way. Merger-related synergies were already being realised in procurement, distribution, sales and systems alignment.
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Premier's Millbake division, which accounts for roughly two-thirds of group revenue, increased revenue by 1.3% to R9.4 billion despite maize price deflation of 20% and wheat price deflation of 5%. EBITDA from the division grew 23.7% to R1.58 billion, while the EBITDA margin improved to 16.8% from 13.8% in the previous comparable period.
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The company said investments in new bakeries at Aeroton in Gauteng and Middelburg in Mpumalanga, together with improvements in logistics and distribution infrastructure, boosted efficiency and supported growth in inland markets. The new facilities are replacing older bakeries, with the Hermanstad bakery already closed and the Potchefstroom bakery due to close following commissioning of the new sites.
The groceries division benefited significantly from the inclusion of the culinary business. Revenue increased to R4.9 billion while EBITDA rose to R513 million, resulting in an EBITDA margin of 10.4%.
Premier said fresh products performed strongly, helped by opportunities to expand its pies and pastries offering, while long life products delivered a solid performance despite challenges arising from the closure of the Tulbagh fruit processing facility. The company expects additional benefits from supply chain integration, merchandising alignment and procurement savings in the months ahead.
Premier said the prolonged conflict in the Middle East had also contributed to higher fuel costs and pressure on consumer disposable income, although the company sought to offset some of the impact through targeted pricing interventions and continuous business improvement initiatives.
Cash generated from operations improved 43% to R1.8 billion, supported by higher earnings and contributions from the culinary business. The company spent R759 million on capital expenditure, including investments in bakeries, depots and distribution facilities.
Premier also repurchased shares worth R207 million during the period and made voluntary debt repayments of R234 million. Despite the debt assumed through the RFG acquisition, the group's leverage ratio remained unchanged at 0.7 times. Net debt stood at R2.3 billion at the end of September.
READ MORE: Competition Commission moves to revoke Premier-RFG's R5.6bn merger over 'non-disclosure'
Basic earnings per share rose 27.5% to 711 cents, while headline earnings per share increased 27.1% to the same level.
Looking ahead, Premier said merger-related benefits were expected to accelerate in the second half of the financial year as integration progresses and supply chain synergies gain momentum. The company also expects grain prices to remain deflationary for the remainder of the current financial year, before the inflationary impact of El Niño weather patterns begins to emerge.
Management said increasing cash generation would be directed towards funding capital expenditure, reducing debt and pursuing further share buybacks, adding that the enlarged group was well positioned to deliver sustainable growth and shareholder value.
