Premier Group H1 sales up 3.7%

Premier Group, a leading food manufacturer, has recently announced impressive half-year results, with a 32.4 per cent increase in headline earnings per share. This growth was driven by effective margin management, cost-saving initiatives, and operational efficiencies. However, the company only saw a modest 3.7 per cent increase in revenue, as it faced challenges such as high interest rates, constrained consumer spending, and volatile soft commodity prices. To delve deeper into these results and gain insights into the company's performance, CNBC Africa hosted Premier Group CEO, Kobus Gertenbach, for an exclusive interview. During the interview, Gertenbach highlighted the dynamics affecting the company's revenue, particularly in relation to soft commodity prices. He explained that stable wheat input prices, coupled with a favorable exchange rate, allowed Premier Group to maintain product prices at previous levels. This strategic decision helped offset other cost pressures, such as wage increases and higher fuel costs, without burdening consumers with price hikes. Looking ahead, Gertenbach expressed confidence in the company's ability to sustain its performance in the second half of the year by focusing on quality products, supply chain efficiency, and cost optimization. While revenue growth is important, he emphasized that Premier Group prioritizes operational excellence and maintaining a balance between growth and consumer affordability. One area of concern highlighted during the interview was the impact of inflation on maize meal prices in South Africa. Gertenbach noted that poor maize harvests in neighboring countries had led to increased demand for South African maize, driving prices higher. However, he remained optimistic about the upcoming planting season and anticipated a significant drop in maize meal prices once the new harvest comes to market. Discussing the company's operations in Mozambique, Gertenbach acknowledged the challenges posed by political unrest in the region. Despite these difficulties, he underscored the importance of maintaining business operations and supporting local communities. Premier Group's facility in Mozambique plays a vital role in the company's supply chain and distribution network, highlighting the importance of stability in the region for long-term success. In conclusion, Premier Group's strong performance in the first half of the year reflects its commitment to strategic management, operational efficiency, and sustainable growth. While revenue growth may vary depending on external factors, the company's focus on quality and cost control positions it well for future success.