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South African Food Firm Premier Group Posts Almost 40% Jump In Annual Profit

By Donna Ahern
South African Food Firm Premier Group Posts Almost 40% Jump In Annual Profit

South African food producer Premier Group on Tuesday posted a near 40% jump in annual profit despite increasing commodity prices and rising inflation.

The company reported a headline earnings per share - the main profit measure in South Africa - of 634 cents for the year ended 31v March, up from 453 cents a year earlier.

Like other food producers, the maker of Blue Ribbon bread and Snowflake flour has had to endure soaring inflation and incessant power cuts.

Inflation Impact

Food and non-alcoholic beverages inflation for April increased by 13.9% year on year, according to government statistics.


The company has, however, managed to mitigate the effects of South Africa's worst rolling blackouts on record which leaves households and businesses in the dark for up to 10 hours daily, it noted in a statement.

"Loadshedding continues to impose multiple operational challenges ... but despite indications that load-shedding will persist for the remainder of the year, future performance of the group is not expected to be materially impacted," the company, which listed on the local bourse in March, noted referring to the power cuts.

News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.

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