Premier Lifts First-Half EBITDA 51.4% to R2bn

Premier's six-month results were driven by the RFG Holdings acquisition, while personal care and sugar confectionery underperformed.

Updated on Nov. 10, 2026 in Corporate Finance

Premier Lifts First-Half EBITDA 51.4% to R2bn

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Premier reported a 51.4% jump in EBITDA to R2bn for the six months to end-September 2026, alongside a 38.8% rise in revenue to R14.3bn. Growth was largely driven by the inclusion of RFG Holdings, acquired in March.

Why it matters

The results show how an acquisition and falling grain prices reshaped Premier's earnings, with Millbake accounting for 66% of group revenue. Weaker personal care and sugar confectionery performance highlights uneven momentum across the group's divisions.

Premier's six-month revenue rose 38.8% to R14.3bn, with Millbake contributing 66% of group revenue and EBITDA margin of 16.8%. Millbake's revenue grew only 1.3% against a 1% volume gain, leaving the rest of the growth tied to the RFG acquisition and unexplained in the extraction.

The players

Premier

Premier is a South African food manufacturer and grocery group whose brands span bakery, groceries and personal care products.

The details

Premier's revenue growth was largely driven by the inclusion of RFG Holdings, which now operates as Premier Culinary within the groceries division. The groceries division's EBITDA rose to R513m, while long-life products were affected by the closure of the Tulbagh fruit processing operation.

March 2026: Premier acquired RFG Holdings.
July 2026: Premier returned R207m to shareholders through share repurchases.
Six months to end-September 2026: Premier reported its first-half FY2027 results.
End of current financial year: Grain prices are expected to remain deflationary.

Market Dynamics

Falling maize and wheat prices, with maize down 20% and wheat down 5%, have lowered Premier's input costs and supported its margin expansion. Premier expects grain prices to stay deflationary until the end of the current financial year.

Shareholders received R207m through share repurchases in July 2026, which affects the capital returned to investors. Premier's improved HEPS of 711c reflects stronger earnings per share for holders of the stock.

The takeaway

Acquisitions can lift reported earnings quickly, but the durability of growth depends on how well the new businesses integrate and how input costs move. Investors should watch Premier's second-half integration progress and grain price trends.

What happens next

Premier expects further benefits from the integration of RFG in the second half of the financial year, and investments in its new Aeroton and Middelburg bakeries are expected to contribute positively.