As at 27 October 2025

Executive Summary

In this report, we review the latest FY25 results for the year ended 30 June 2025.
Financial results at a glance:
•    Intrinsic Net Asset Value (INAV) as of 30 June 2025: R162.5 billion (after tax), representing a 16.7% increase year-on-year from R139.3 billion in FY24, supported by stronger earnings contributions across more than 80% of portfolio companies and higher valuations in key investments.
•    Year-on-year change: INAV per share increased by 16.5%, driven by improved operational performances from major investees such as Mediclinic, OUTsurance, RCL Foods, and Rainbow, as well as Heineken Beverages’ return to profitability.
•    INAV per Share: R292.34 as at 30 June 2025 (previous: R251.01 as at 30 June 2024). Remgro’s share price of R158.20 (as at 30 June 2025) reflects a 45.9% discount to intrinsic value (FY2024: 45.8%).
•    Headline earnings: R7.83 billion, up 38.6% from R5.65 billion in FY24, driven by broad-based earnings growth, lower finance costs following preference share redemptions, and improved operational results across investees.
•    Dividends: Ordinary dividend of 344 cents per share (+30.3%) and a special dividend of 200 cents per share, both declared from income reserves. The final payment date is 27 October 2025.
•    Cash and Liquid Funds: R8.36 billion held at the centre (FY24: R6.82 billion), with 40% (R3.33 billion) invested in money market funds. The increase reflects stronger dividend inflows and lower interest expenses following the redemption of preference shares.
•    Post year-end, Remgro sold the entire British American Tobacco stake (1.25 million shares) in September 2025 for R1.21 billion.

Analyst thesis

Our recommendation is based on:

•    High-quality diversified portfolio: Remgro is a leading South African investment holding company with a proven track record of disciplined capital allocation and value creation across healthcare, consumer, infrastructure, and financial services.
•    Strong balance sheet and capital flexibility: The company maintains a conservative capital structure with low gearing, providing resilience and the capacity to pursue new investment opportunities or enhance shareholder returns.
•    Additional tier of proactive oversight and strategic direction: Remgro management’s involvement in the underlying businesses enhances the governance and value-creation potential across the individual portfolio companies.
•    Value-unlocking potential: As its share price usually trades at a discount to book value or NAV, it provides rerating potential through selective asset disposals, portfolio simplification, and increased shareholder distributions. Remgro is well-positioned for NAV growth.