The South African economy is struggling, business conditions are tough and the consumer is under pressure. Trade war news continue to dominate global headlines.

Remgro’s assets are generally well positioned within their respective sectors, liquid and cash-generative with healthy balance sheets.

The ability to navigate challenging times requires a calm and patient temperament. Remgro is well placed to pursue opportunities that may present themselves, as well as support the Group’s investee companies on their various trajectories.


On 2 July 2018 Unilever South Africa Holdings Proprietary Limited (Unilever) acquired Remgro’s 25.75% shareholding in Unilever in exchange for Unilever’s Spreads business in Southern Africa, as well as a cash consideration of R4 900 million, representing a total transaction value of R11 900 million. This transaction valued the Unilever Spreads business at R7 000 million. The Unilever Spreads business was transferred to Siqalo Foods Proprietary Limited, which became a wholly owned subsidiary of Remgro on 2 July 2018.

For the year to 30 June 2019, Remgro’s headline earnings decreased by 4.4% from R8 573 million to R8 195 million, while headline earnings per share (HEPS) decreased by 4.2% from 1 512.6 cents to 1 448.9 cents.

Included in headline earnings for the year under review is a positive fair value adjustment amounting to R112 million (2018: R261 million), relating to the decrease in value of the bondholders’ exchange option of the exchangeable bonds (option remeasurement). Excluding the option remeasurement, headline earnings decreased by 2.8% from R8 312 million to R8 083 million, while HEPS decreased by 2.6% from 1 466.5 cents to 1 429.1 cents.

Remgro’s intrinsic net asset value per share decreased by 9.3% from R256.97 at 30 June 2018 to R233.03 at 30 June 2019. The closing share price at 30 June 2019 was R187.90 (30 June 2018: R204.29), representing a discount of 19.4% (30 June 2018: 20.5%) to the intrinsic net asset value. As at 30 June 2019, 23% of Remgro’s intrinsic net asset value was represented by unlisted investments (2018: 21%).


The Board has approved a final dividend of 349 cents per share, up 6.4% from 328 cents per share last year. The total ordinary dividends per share in respect of the year to 30 June 2019 thus amounted to 564 cents.


Remgro is fully committed to managing its business in a sustainable way and upholding the highest standards of ethics and corporate governance practices. The Board of Directors is ultimately accountable for the performance of the Company, appreciating that strategy, risk, performance and sustainability are inseparable.

Our governance framework is based on the principles contained in the King IV Report on Corporate Governance for South Africa (2016) and we are satisfied that the Company has applied those principles during the year under review. We further believe that the Board’s current members possess the required collective skills, experience and diversity to carry out its responsibilities to achieve the Group’s objectives and create shareholder value over the long term.


Mr A E Rupert was appointed as a non-executive director of Remgro on 29 November 2018.

The Board wishes to welcome Mr A E Rupert as a director to the Company.


We extend our sincere appreciation to all who contributed to the performance of the Group over the past year: the shareholders for their continued confidence; the managing directors and all colleagues in the various investee companies for their co-operation and support; all other directors, officials and employees for their dedication; and all parties concerned for services rendered.

Johann Rupert

19 September 2019