Remgro declares special dividend amid strong portfolio performance

Remgro, the JSE-listed investment group with well-known South African businessman Johann Rupert as its major controlling shareholder, has declared a 200 cents a share special dividend, bringing its total payout to shareholders to about R3.09 billion for the year.

The special dividend for the year to June 30 followed the disposal of the interest in British American Tobacco and strong performances from nearly all Remgro's investee companies. The special dividend is in addition to the total dividend for the year, which increased by 30.3% to 344 cents a share compared with the previous year.

Remgro's intrinsic net asset value per share increased by 16.5% to R292.34 at June 30, from R251.01 at June 30 a year before. The closing share price at June 30, 2025, was R158.20 (2024: R136.09), representing a discount of 45.9% (2024: 45.8%) to the intrinsic net asset value.

The share price traded 1.9% higher to R177.01 on Tuesday morning, a price that had gained 15.8% over 12 months.

“We are pleased with the progress that has been achieved; as our interventions and the efforts of our broader team are starting to illustrate the value inherent in our portfolio, crystallising a more focused investment thesis,” said the CEO Jannie Durand.

“This strategy continues to be executed with determination, and the results are starting to reflect in the improved performance in the year under review; with a portfolio that is more streamlined, has greater scarcity, is robustly capitalised, and better positioned for growth,” he said.

In a presentation, Durand said business confidence in South Africa had improved on the back of progress on structural reforms through Operation Vulindlela, but there was still pressure on consumers despite further monetary policy easing. The sustained stability in energy availability was also a significant positive.

Headline earnings per share increased by 38.4% to R14.09 after positive momentum in the group’s investments was sustained in the second half. More than 80% of Remgro's portfolio achieved growth in headline earnings through the year.

“Remgro is pleased with the progress that has been achieved against its strategic priorities and believes that a more focused investment thesis is starting to emerge from these results,” Rupert and CEO Jannie Durand said in the results.

The balance sheet was now fully ungeared, with cash at the centre of some R8.36bn, positioning the group for current and new investments.

It has now been five years since Remgro adopted its simplify, optimise, and focus strategy.

“This strategy has been executed with determination, and the results are starting to reflect in the improved performance seen in this year; with a portfolio that is more streamlined, has greater scarcity, is robustly capitalised, and better positioned for growth,” said Durand.

The most significantly improved performances were from the increased contributions from Mediclinic Group, OUTsurance Group, Rainbow Chicken, and RCL Foods. In addition, Heineken Beverage Holdings returned to profitability, driven by volume growth and margin recovery.

This was partly offset by lower contributions from TotalEnergies Marketing South Africa, mainly due to higher negative stock revaluations, and lower dividends from Momentum Group following its disposal.

There was also lower finance costs due to the redemption of preference shares.

Durand said the path to these results was “far from straightforward,” and a series of unforeseen external disruptions had to be navigated along the way.

“Looking ahead, Remgro will continue to navigate the prevailing global and local macro uncertainty through unwavering focus on driving returns through close partnership with our management teams and disciplined execution from our portfolio of quality assets,” he said.

He said their strategy to sharpen and simplify the portfolio would remain key to unlocking the intrinsic value of the group.

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