A Staple Success: Premier Foods Posts Strong Growth as South Africa Relies on Basics

In an economy where every rand counts, South African households are turning to the familiar, the affordable, and the reliable. This trend is fueling a strong performance for one of the country’s oldest companies, Premier Foods, which has just reported impressive half-year results driven by the enduring appeal of its staple food brands.

For the six months ended 30 September 2025, the owner of household names like Blue Ribbon flour, Iwisa maize, and Snowflake bread saw revenue climb 6.4% to R10.3 billion. More significantly, its operating profit surged by 17% to R1.1 billion, demonstrating efficient management and strong consumer demand for its core products.

The Power of the Pantry Staples

The company’s massive Millbake division, which contributes 83% of all revenue, was the primary engine of this growth. Sales of wheat flour showed “encouraging volume growth,” a clear indicator that home baking and essential food consumption remain resilient.

“Demand for the iconic Snowflake brand remains robust,” the company noted, even in the face of stiff price competition. Perhaps the most telling comment highlighted the role of its products in the national diet: “Maize remains one of the most affordable ways to feed a family, so remains a key staple food product for most South Africans.”

Investing for the Future

This financial health is allowing the 200-year-old company to future-proof its operations. A key project is the Aeroton “megabakery” in Gauteng, with its first phase on track for completion in mid-November 2025.

This significant investment is not just about expansion; it’s about efficiency and quality. The new, high-speed production lines are expected to “alleviate substantial capacity pressure” and “fundamentally improve the quality” of bread supplied to the inland region.

The strong operational performance flowed directly to the bottom line. Net profit jumped 27.4% to R719 million, and cash generated from operations increased by a healthy 34.7% to R1.3 billion. Rewarding shareholders for this performance, the company declared an interim dividend of 159 cents per share.

The results paint a clear picture: in uncertain times, consumers gravitate towards trusted staples. By efficiently providing the flour, maize, and bread that fill South African pantries, Premier Foods is not just sustaining a legacyit’s baking a recipe for continued growth.

{Source: DailyInvestor}

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