Johann Rupert’s South African darling scores big

Remgro, chaired by South Africa’s wealthiest man Johann Rupert, has seen a massive jump in headline earnings.

The group said the first half of the 2025 financial year saw a positive trend following its strategic focus on disciplined capital allocation and active partnerships to drive company performance.

Remgro houses the South African assets of the Rupert empire, with its history dating back to his father Anton’s company Rembrandt.

The company has large stakes in OUTsurance, the Blue Bulls, Mediclinic, SEACOM and more. However, most of Rupert’s wealth is tied to Richemont, a luxury goods company that owns Cartier and Montblanc.

The group said that the period under review was characterised by global macroeconomic and geopolitical instability.

However, the local operating environment showed moderation due to improved investor and consumer confidence, ongoing traction on political reform and positive key economic indicators.

Headline earnings increased by 38.7% from the restated R2,687 million to R3,728 million, while headline earnings per share (HEPS) increased by 38.6% from the restated 485 cents to 672 cents.

The increase in headline earnings was due to improved operational performances from most of its companies, including Rainbow Chicken, RCL Foods, OUTsurance and Mediclinic.

Heineken Beverages Holdings Limited also returned to profitability, driven by volume growth and margin recovery.

However, this was partly offset by lower contributions from TotalEnergies Marketing South Africa Proprietary Limited, which delivered R331 million less due to negative stock revaluations.

Community Investment Ventures Holdings Proprietary Limited, the owner of Vumatel, also delivered R147 million less.

This was on the back of increased borrowing costs due to higher average debt balances and a negative fair value adjustment on an interest rate hedge.

Total earnings still amounted to a profit of R3,658 million, a marked improvement from the loss of R1,638 million in the prior period.

The increase in earnings was mainly due to the increase in headline earnings, as well as an impairment and goodwill created by Heineken Beverages in the comparative period.

The increase was partly offset by profits realised in the comparative period relating to the disposals/termination of DC Foods Proprietary Limited, Vector Logistics and Gordon Gin’s agreement.

Moreover, the increase in headline earnings also factors in a substantial restatement in the comparative period following an accounting error in TotalEnergies’ annual financial statements for 2023.

The fair value of its disposal group, primarily its investment in Natref, was initially incorrectly accounted for. This led to a higher write-down of TotalEnergies’ affected net assets, impacting Remgro’s results.

On the back of the increased headline earnings, the group declared an interim dividend of 20% to 96 cents per share.