Remgro Full-Year Earnings Fall 14 Percent on Mediclinic DebtKamlesh Bhuckory
Remgro Ltd., a holding company controlled by South African billionaire Johann Rupert with assets in banking, food and health services, said full-year earnings declined on debt refinancing charges for Mediclinic International Ltd.
Headline earnings, which exclude one-time items, for the 12 months ended in June fell 14 percent to 4.4 billion rand ($448 million) from a year ago, the company said in a statement today. Revenue increased 23 percent to 16.45 billion rand, beating the 16.2 billion-rand average estimate of four analysts surveyed by Bloomberg.
The Mediclinic refinancing charges amounted to 1.3 billion rand, led by “derecognition of the mark-to-market liability relating to the Swiss interest rate swap,” the company said. Remgro, based in Stellenbosch, holds stakes in companies including Unilever South Africa, fiber-optic cable operator Seacom and financial services group FirstRand Ltd.
“The customer is struggling out there,” Remgro Chief Executive Officer Jannie Durand said in a phone interview. “The trend has continued.”
Remgro shares fell 2.2 percent to 193.62 rand at the close in Johannesburg today, valuing the company at 107 billion rand. The shares have advanced 22 percent this year compared with an 11 percent gain in the 165-member FTSE/JSE Africa All-Share Index.
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