Remgro cautioned that the ongoing conflict in Iran has increased uncertainty in global markets and could weigh on companies with operations in the region. The investment group has stakes in companies such as Mediclinic, Rainbow, Mediclinic, Heineken Beverages, OUTsurance and Discovery.
Image: Supplied
Tawanda Karombo
Remgro has warned that its exposure to the Middle East, through healthcare group Mediclinic, leaves it vulnerable to escalating tensions involving the United States, Israel and Iran, even as it delivered a strong set of interim results.
The investment holding company reported a 38.5% increase in headline earnings per share to 931 cents for the six months to December, supporting an 80.2% jump in its interim dividend to 173 cents per share. It also declared a special dividend of 200 cents per share.
However, Remgro cautioned that the ongoing conflict in Iran has increased uncertainty in global markets and could weigh on companies with operations in the region. This comes despite a temporary five-day pause in attacks announced by US President Donald Trump.
“The Group is directly exposed to the region through Mediclinic Holdings Limited’s market-leading healthcare operations in the United Arab Emirates, the prospects of which are closely linked to the ongoing stability and prosperity of the region,” said the company.
“More broadly the impact of the conflict introduces risks to global asset prices, particularly those in a portfolio such as Remgro’s that is skewed towards emerging markets, through the threat of increasing inflation and the higher cost of capital.”
In the half-year to December, Remgro lifted headline earnings per share by 38.5% to 931 cents, pushing up dividends for the interim period by 80.2% to 173 cents.
Remgro also paid a special dividend of 200 cents per share and unbundled its investment in eMedia Holdings, with its stock closing 2025 at R181.61, representing an increase of 14.8% for the period.
The company closed the period with an intrinsic net asset value per share that was higher by 1.6% at R297.03 while total earnings for the period amounted to R5.1 billion.
Remgro said the earnings growth trajectory for the half-year was due to increased contributions from Mediclinic, Rainbow Chicken, Community Investment Ventures Holdings and Heineken Beverages.
There was also a stronger contribution from TotalEnergies Marketing South Africa, mainly due to a once-off Transnet pipeline cost refund as well as lower finance costs due to the redemption of preference shares during the prior year.
Nonetheless, this earnings gains were partly offset by a lower contribution from RCL Foods whose growth was muzzled by a weaker performance from the sugar business unit.
In spite of this, Remgro experienced strong cash flow generation during the review period, mainly due to a 34% increase in sustainable dividends received from investee companies amounting to R2.4bn.
This amount excludes inter alia the CIVH pre-implementation dividend of R2.6bn, which was received on completion of the CIVH/Vodacom transaction in December 2025.
Shares in the company were up by 1.66% at R181.96 in early trade on the JSE on Wednesday, reversing the stock’s 1.8% and 5.23% declines in the past seven and 30 days, respectively.
BUSINESS REPORT