Remgro’s chairman, Johann Rupert
Investment holding company Remgro’s performance has begun recovering following a tough 2020, dominated by the Covid-19 pandemic.
In its annual results for the year ended 30 June 2021, the group said its headline earnings from continuing operations saw a 66.1% jump, from R1.7 billion to R2.8 billion. Its headline earnings per share, from continuing operations increased by 66%, to R510.6 cents from 307.5 cents.
Remgro, which is chaired and controlled by Johann Rupert, attributed the increase in its headline earnings from continuing operations to the improved performance of most of its investee companies, RCL Foods, Distell, TotalEnergies, and Rand Merchant Investment (RMI).
RMI, announced on Monday that it will unbundle its Discovery and Momentum Metropolitan stakes to its shareholders. The company has a 25% in Discovery and 27% in Momentum Metropolitan, making it their largest shareholder.
Despite the earnings recovery on its continuing operations, Remgro’s total headline earnings dropped by 8.9%, to R2.8 billion, while its headline earnings per share dropped from 560.6 cents to 510.6 cents.
“The headline earnings from continuing operations for the comparative year were significantly impacted, during the second six months to 30 June 2020, by the Covid-19 pandemic and the resultant lockdown measures, as well as by a once-off donation of R500 million to the South African SME Relief Trust,” the group explained in a statement.
The company also said the increase in its earnings was offset by the performance of private hospital group Mediclinic International, which was hit hard by Covid-19 related lockdown measures. The hospital group’s earnings dropped by 59% for the year.
The reclassification of FirstRand from an equity accounted investment to an investment at fair value, also impacted the group’s earnings.
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