Guest Writer- Lindinkosi Mdluli
Premier Group, the parent company of Premier Eswatini has been listed on the Johannesburg Stock Exchange (JSE) by way of an Initial Public Offering (IPO). The listing took place on the 24th of March 2023.
Brait, the owner of the Premier Group notes that it has raised an aggregate amount of R3.7 billion through the sale of Premier shares to entities associated with Dr. CH Wiese (who will hold 31% of the ordinary shares in issue following admission), as well as South African institutional investors (who will hold 21% of the ordinary shares in issue).
The company has listed under the food products sector and has been assigned the share code PMR.
Premier is one of the oldest companies in South Africa and has been listed on the JSE in the past. The company was listed on the JSE in 1960 and delisted in 2005. Over the last decade, Premier enjoyed phenomenal growth, which confirmed its blue-chip status.
Ownership and performance
The Premier Group is currently owned by Brait Plc, an investment holding company registered in Mauritius and listed on the Luxembourg Stock Exchange, and has a secondary listing on the JSE in South Africa. Brait values the Premier Group at R6.9 billion.
The company achieved revenue growth of 25% and earnings before interest, tax, depreciation, and amortization (EBITDA) of 16% for the six months ended 30 September 2022, ahead of the comparative period for the six months ended 30 September 2021.
Products
The company is one of the leading consumer packaged goods (“CPG”) companies in Southern Africa with a notable presence in South Africa, Eswatini, and Mozambique. It offers its customers a variety of products through a wide range of categories, therefore strategically positioning itself within the food and beverage, and home and personal care sectors whilst also maintaining its flexibility to capitalize on growth areas in the CPG industry.
In its portfolio, Premier has two reporting business units that produce a variety of products. Under the Millbake unit, the company has bread, maize, wheat, rice, sandwich squares, samp, and instant porridge, to mention a few.
Groceries and International is the second business unit that has three divisions. The Sugar Confectionery division offers an extensive range of products including marshmallows, gums, and sweets. The Home and Personal Care division offers sanitary pads, non – applicator and applicator tampons, liners, and plastic gloves.
Eswatini Operations
In 2011, the Eswatini Competition Commission gave a green light to the acquisition of the Swaziland United Bakeries and Mr. Bread brands, assuming the name – Premier Bakeries. Premier Group forked out E85 million for the acquisition and assumed 75% of the bread market share in Eswatini.
Determined to dominate the local market, the Premier Group dug deep into its pockets again and made an offer of E100 million for Ngwane Mills – a wheat and flour operation – in 2014. In 2018, the company acquired Swazi Mahewu which further consolidated its position in Eswatini as a market leader in the grain and maize products sector.
South Africa and Mozambique operations
In South Africa, Premier is responsible for producing and also marketing widely known brands such as Blue Ribbon, Snowflake, Iwisa, Mister Sweet, and Dove cotton wool. The company also has popular brands in Mozambique such as CIM, Florbela, Polana, and Top Score.
Additional information was sourced from the Johannesburg Stock Exchange website.
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