Remgro Limited, the publicly listed investment holding company controlled by South Africa’s wealthiest individual Johann Rupert, released its interim results for the first six months of its 2024 fiscal year today. The report unveiled a mixed performance, showcasing a modest increase in revenue, but a significant drop in headline earnings.
According to the financial statement published by Remgro, the company recorded a 5.2-percent increase in revenue for the first half of its 2024 fiscal year. Revenue rose from R24.16 billion ($1.28 billion) in the corresponding period of the previous fiscal year to R25.41 billion ($1.35 billion) in the current reporting period.
Remgro’s earnings fall short despite revenue growth
Despite the growth in revenue, Remgro’s headline earnings fell short of expectations, declining by 40.1 percent. Headline earnings dropped from R3.53 billion ($187.7 million) to R2.11 billion ($112.2 million) due to a combination of factors.
These included one-off corporate actions, underperformance in the Heineken Beverages investment, lower industry growth rates, and power outages. The adverse effects were partially mitigated by strategic share buybacks in Heineken carried out in July 2023.
Johann Rupert’s Remgro maintains dividend despite earnings slide
Established in the 1940s by Anton Rupert, Remgro Limited has undergone significant evolution under the leadership of Johann Rupert. The company’s investment portfolio spans various sectors, including healthcare, consumer products, financial services, infrastructure, industrial, and media industries.
Ranked as Africa’s second-richest man and South Africa’s wealthiest individual, Rupert maintains significant control over Remgro Limited. Holding all the issued unlisted B ordinary shares of the company, Rupert commands 42.91 percent of the total votes.
Remgro’s interim results reflect a nuanced performance characterized by revenue growth, but a substantial decline in headline earnings. Despite facing challenges, the company continues to navigate the market under Johann Rupert’s leadership, maintaining diversified investments across various sectors.
Despite facing a significant decline in its earnings, Rupert’s Remgro maintained its interim dividend at R0.8 ($0.425) per share for the six months ended Dec. 31, 2023. The dividend was declared out of income reserves, signaling confidence in the bank’s resilience and strategic direction amidst challenges.
