Business

CEO of Woolworths’ new chocolate maker gets massive R18.49 million bonus

Malcolm Libera

 ·4 Aug 2026

Premier Group chief executive Kobus Gertenbach earned a performance bonus of R18.49 million for the 2026 financial year.

This comes after the food producer delivered strong financial growth and expanded its business through a major acquisition, according to the company’s latest annual report.

Premier, which owns several well-known South African food brands, also recently expanded its partnership with Woolworths by taking on the retailer’s chocolate and liquorice product ranges as part of its private-label manufacturing business.

Gertenbach has led Premier Group for just over five years and has overseen the company’s growth, including its listing on the JSE in 2023 and the landmark acquisition of RFG Holdings.

The remuneration report shows that Gertenbach was awarded a short-term incentive (STI) bonus of R18.494 million for the 2026 financial year.

This differs from the R17.386 million reflected in the company’s single-figure remuneration table, which represents payments made during the year that relate to previous performance periods, including deferred portions of earlier bonuses.

Under Premier’s remuneration policy, half of the 2026 performance bonus will only be paid after a 12-month deferral period to encourage long-term performance.

The company said its executive remuneration model is designed to reward performance rather than fixed salaries.

“The group’s remuneration philosophy is to reward performance through variable pay, with executive fixed remuneration positioned below market levels relative to comparator companies,” the report said.

Premier added that Gertenbach achieved the maximum “stretch” bonus level of 210% of his total guaranteed pay after exceeding targets across most of the company’s performance measures.

His overall performance rating for the year was 4.5 out of 5, while he did not receive any long-term incentive vesting payments during the financial year.

The remuneration committee also approved a 20% increase in Gertenbach’s guaranteed pay for 2027. This consists of a 5.5% general salary increase and a further 14.5% market-alignment adjustment following the company’s rapid growth since listing.

Good news for investors

Premier said the adjustment moves his fixed remuneration closer to comparable companies but still leaves it below the median level of similar JSE-listed food manufacturers.

The company delivered a strong financial performance during the year. Revenue increased 6.6% to R21.2 billion, while EBITDA rose 18.2% to R2.8 billion.

Operating profit climbed 23.2% to R2.4 billion, and headline earnings per share increased 27.7% to 1,204 cents.

Cash generated from operations jumped 39.5% to R3.3 billion, while net finance costs declined 27.5% to R221 million after the company reduced debt ahead of its acquisition of RFG.

One of the biggest developments during the year was the R6.5 billion acquisition of RFG Holdings, which was completed in March 2026 through a share-swap transaction.

The deal created a new Culinary division and made Premier the second-largest listed food manufacturer on the JSE by revenue.

The company expects the acquisition to deliver significant savings through shared logistics, procurement and support services by the end of the 2027 financial year. Premier also continued expanding its relationship with Woolworths.

Its sugar confectionery division added Woolworths’ chocolate and liquorice products to its private-label manufacturing portfolio and is participating in the retailer’s Factory for the Future programme.

The company also invested R1 billion in capital expenditure during the year, including completing its new Aeroton bakery in Gauteng.

The facility replaces three older bakeries and is expected to improve production efficiency and lower distribution costs.

Shareholders also benefited from the company’s strong performance. Premier’s share price has risen 219% since its 2023 JSE listing, while the group declared a total dividend of 341 cents per share for the year, up 25.8% from the previous financial year.

It also repurchased R322 million worth of shares during March 2026 while maintaining a relatively low debt level despite completing the RFG acquisition.

Premier Group FY2026 Financial Performance