Premier Foods gets listed on Johannesburg Stock Exchange | Food Business Africa Magazine

SOUTH AFRICA – Premier Foods, one of the leading consumer packaged goods (“CPG”) businesses that offer a diverse array of products across Southern Africa, has listed its Premier shares in the ‘45102020 -Food Products’ sector of the Johannesburg Stock Exchange (JSE) under the abbreviated name “Premier” and share code “PMR.”

As the first company to list on the JSE this year, Premier establishes its leadership and innovator position as a South African food and consumer packaged goods business. Premier has begun trading with 128.9 million shares issued.

Brait PLC (“Brait”), the ultimate controlling shareholder of Premier, listed Premier Foods on the 24th of March on the JSE, intending to raise gross proceeds of up to R3.7 billion at an offer price range per offer share between R53.82 and R67.04, equating to an equity valuation range of R6.9 billion to R8.6 billion.

According to Brait, the listing will provide Premier with access to capital markets, which it may utilize to bolster and expand further growth following its strategic goals, as well as to fund potential acquisitions.

Kobus Gertenbach, Chief Executive Officer of Premier Group, believes the decision to list on the JSE is an exciting step in the company’s growth journey.

“Premier has set the foundation for success with double-digit growth for the last five years resulting in the scale to list so that we can more readily pursue our organic and acquisitive growth strategy. We believe we can build on this foundation to embed our strong market position,” he noted.

Gertenbach said last year that once the Company is listed on the JSE, the executive management team will remain materially invested in Premier, thereby ensuring strong alignment between existing and new shareholders.

Premier has expanded its portfolio from a traditional milling and baking business to include a groceries business. Its operations can be separated into two divisions: Millbake and Groceries and International.

The Millbake business operates bakeries, maize, and wheat mills supported by an extensive distribution capability throughout South Africa, Lesotho, and Eswatini.

Premier’s Groceries and International business comprise a portfolio of sugar confectionery products, home and personal care products, beverages, and a diversified product portfolio in Mozambique.

The CPG owns popular South African consumer brands such as Blue Ribbon, Snowflake, Iwisa, Lil-lets, Manhattan, and many more.

According to DataOrbis market share data, Premier has an approximate 24% market share in bread, 32% market share in flour, 20% market share in maize, 18% market share in total sugar-based confectionery, and an 18% market share in feminine care in South Africa.

For the first half of its 2023 financial year, Premier delivered a positive performance having a revenue growth of 23.9% year-on-year despite high commodity prices, load shedding, and other cost inflationary pressures.

In the same quarter, Millbake’s revenue increased by 24.7% to R 7.2 billion, as the division delivered volume growth in the bread, wheat, and breakfast categories, while revenue for the Groceries and International division increased by 19.8% to R1.5 billion.

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Jay Ndungu

Jay is a computer scientist and journalist with a passion for the intersection of technology and society. He has a background in computer science, developing a deep understanding of the technical aspects of the industry, including programming languages and software development methodologies. Currently, He writes for Nairobi Times, covering a wide range of topics including technology, politics, sports, and entertainment. With his unique combination of technical knowledge and journalistic experience, Jay brings a unique perspective to the stories he covers, able to explain complex technical concepts in an easy-to-understand manner. His work is dedicated to bridge the gap between technology and society, and to make people more aware of the potential of technology to make the world a better place.

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