Our opinion on the current state of PMR

14 Kas 2023

Premier is a food producer which was spun out of Brait (BAT) through an initial public offer (IPO) and separately listed on 24th March 2023 which raised R3,6bn at a share price of 5382c per share. Brait retained 47,1% of Premier. Premier has managed to mitigate the impact of loadshedding on its operations, the costs of which were not a material impact on its financial performance. In its results for the year to 30th September 2023 the company reported revenue up 7,1% and headline earnings per share (HEPS) up by 0,8%. The company said, "The trading environment has been characterised by currency and soft commodity volatility, extensive infrastructural constraints and high interest rates. The consumer remains under significant stress which has been compounded by the low growth economy..." Since it listed on 24th March 2023 the share has been drifting sideways, but it is very early days and no meaningful technical analysis is yet possible. We expect this share to be a blue chip quality operation which is sought after by institutional investors - and hence a solid investment for private investors.