Remgro Delivers Impressive Earnings Surge in 2025, Hands Out Special Dividend to Shareholders Including Johann Rupert
Johann Rupert, South Africa’s wealthiest individual and chairman of investment powerhouse Remgro, is set for a substantial financial boost following the company’s robust performance for the financial year ended 30 June 2025. The group announced a significant rise in headline earnings, driven by strong showings from key investments, leading to an increased ordinary dividend and a special payout linked to the sale of its stake in British American Tobacco. This move highlights Remgro’s focus on streamlining its portfolio and rewarding investors amid challenging economic conditions.
Remgro, which traces its roots back to the 1940s when it was founded by Anton Rupert as Rembrandt, has grown into a diversified holding company with interests spanning healthcare, consumer products, financial services, infrastructure, industrials, and media. Today, it oversees nine investment platforms, including major stakes in entities like Mediclinic Group, RCL Foods, and Heineken Beverages. The latest results underscore the resilience of these assets, even as global and local uncertainties persist, such as geopolitical tensions and domestic power issues.
Strong Financial Performance Amid Economic Headwinds
For the year under review, Remgro reported headline earnings of R7.83 billion, marking a 38.6% increase from R5.65 billion in the previous year. Headline earnings per share climbed 38.4% to R14.09, while earnings per share surged by an even more impressive 165.6% to R5.95. Revenue grew modestly by 2.2% to R51.51 billion, reflecting steady operations across the board.
The group’s intrinsic net asset value per share rose 16.5% to R292.34 from R251.01 a year earlier, signalling enhanced underlying value. However, the share price closed at R158.20 on 30 June 2025, up from R136.09, but still trading at a 45.9% discount to this net asset value—almost unchanged from the prior year’s 45.8% gap. This discount highlights ongoing market perceptions of the conglomerate’s structure, yet it does not detract from the operational gains achieved.
Key drivers of this growth included standout contributions from several investee companies. Mediclinic, a leading private healthcare provider, delivered improved results through better patient volumes and cost management in its international operations. OUTsurance, the insurance arm, benefited from favourable claims trends and expanded market share in short-term insurance. Food businesses like Rainbow Chicken and RCL Foods saw gains from efficient supply chains and rising demand for poultry and consumer goods.
Heineken Beverages, formed through the merger of Distell and Heineken’s local assets, returned to profitability after prior-year challenges. This turnaround was aided by the reversal of impairments on Remgro’s Heineken investment and its share of goodwill adjustments from the transaction. These positives helped offset a dip in contributions from TotalEnergies Marketing South Africa, where fuel distribution faced headwinds from volatile energy prices.
Additionally, lower finance costs at the group level bolstered headline earnings, contributing to strong cash generation at Remgro’s head office. This cash flow stemmed largely from higher dividends received from portfolio companies, enabling the group to maintain liquidity while pursuing strategic goals.
Dividend Bonanza for Shareholders
In a move that delighted investors, Remgro declared an ordinary gross dividend of 344 cents per share, a 30.3% hike from 264 cents in 2024. On top of this, a special dividend of 200 cents per share was announced, payable from income reserves. The special payout is directly tied to the earlier disposal of Remgro’s holding in British American Tobacco, a step described as part of the company’s commitment to shedding non-core assets and optimising capital allocation.
Both dividends apply to ordinary and B-shares alike. For Johann Rupert, who holds a commanding stake in the company, this translates into a hefty windfall. Through a controlled associate, he owns 7,553,865 ordinary shares, and via Rupert Beleggings Proprietary Limited, he controls 39,056,987 B-shares—totalling around 46.6 million shares, or nearly 50% of the company including all B-shares.
Based on the combined dividend of 544 cents per share, Rupert’s gross payout amounts to approximately R253 million. After accounting for the 20% dividend withholding tax, his net take-home is estimated at about R196 million, subject to any applicable tax treaties or arrangements. Notably, as chairman, Rupert draws no salary or other remuneration from Remgro, aligning his interests purely with shareholder returns. In contrast, non-executive directors receive annual fees of around R640,000.
The total special dividend across all shareholders is projected to exceed R1 billion, given Remgro’s issued share capital, further emphasising the scale of this distribution. This payout comes at a time when many companies are conserving cash, making Remgro’s decision a vote of confidence in its financial health.
Portfolio Evolution and Strategic Focus
Remgro’s results reflect a deliberate strategy of active portfolio management. The sale of the British American Tobacco stake earlier in the year not only freed up capital but also reduced exposure to sectors outside the group’s core focus. CEO Jannie Durand highlighted the challenges overcome, stating, “the path to achieving these results has been far from straightforward, and we had to navigate a series of unforeseen external disruptions along the way.”
He added, “These disruptions notwithstanding, the driving ambition of the process was our steadfast belief that we own quality assets, and I am proud of the transformation in our business and portfolio to date.” Looking forward, Durand emphasised continued efforts to simplify the portfolio, sharpen focus, and navigate macro uncertainties both globally and locally.
The group’s diversified holdings provide a buffer against sector-specific risks. For instance, in consumer products, RCL Foods and Rainbow Chicken have expanded into value-added processing, tapping into growing demand for affordable proteins. In infrastructure, investments like CIVH (fibre optics) and Grindrod (logistics) support South Africa’s connectivity and trade needs. Industrial arms, including Air Products for gases and Wispeco for aluminium, contribute steady earnings through essential manufacturing.
Financial services via RMI Holdings offer exposure to banking and insurance, while media interests in eMedia Investments ensure a foothold in broadcasting. This broad base has helped Remgro weather issues like supply chain disruptions, inflationary pressures, and the lingering effects of the Russia-Ukraine conflict on commodities.
Leadership Transitions and Governance
Amid these financial highs, Remgro announced board changes to strengthen governance. Independent non-executive directors F Robertson and N P Mageza retired effective 30 June 2025, paving the way for fresh perspectives. The board remains led by Johann Rupert as chairman, with S E N De Bruyn as deputy chairman, alongside other independents like P J Moleketi and M Morobe.
The company also maintains an ethics hotline for stakeholders, underscoring its commitment to transparency. Invenfin, Remgro’s venture and growth capital division, continues to scout emerging opportunities, adding a forward-looking element to the portfolio.
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