JOHANNESBURG, Nov 11 (Reuters) - South African food producer Premier Group on Tuesday posted a 27.9% rise in half-year profit and announced a share repurchase programme to keep its financial structure in good shape ahead of its transaction with RFG Holdings (RFGJ.J) , opens new tab.

The maker of Blue Ribbon bread and Snowflake flour, reported a headline earnings per share - the main profit measure in South Africa - of 560 cents for the six months ended September 30, while operating profit rose 17% to 1.1 billion rand ($63.54 million).

Sign up here.

Profit growth was supported by improved efficiencies and margin expansion across both major divisions, Premier said.

Group revenue growth was moderate against deflation in global grain prices, including maize and rice. It rose by 6.4% to 10.3 billion rand, with its millbake business which makes maize, bread and flour rising by 6%, the company said.

Premier said the repurchase is primarily driven by strong free cash flow generation over recent financial periods and aligns with its disciplined capital allocation framework.

Shares will be repurchased at up to 154 rand apiece, the reference price used in the RFG transaction. Premier said it will monitor market conditions and trading volumes, and may pause, cancel or adjust the programme at any time.

Last month Premier agreed to acquire all the shares of RFG, which makes Rhodes canned food and Bull Brand corned meat, through a share swap deal valued at about 5.7 billion rand, in which RFG shareholders will take a 22.5% stake in the combined group.

It also declared a once-off interim dividend of 159 cents per share as a result of the proposed RFG transaction. Premier normally does not declare an interim dividend.

The final dividend will be reduced by the once-off interim dividend, Chief Financial officer Fritz Grobbelaar said in a media call.

($1 = 17.3125 rand)

https://www.reuters.com/world/africa/south-africas-blue-ribbon-bread-maker-premiers-profit-jumps-2025-11-11/