JOHANNESBURG, Mar 30 – Remgro, the Stellenbosch-based investment holding company chaired by Johann Rupert, delivered a sharp increase in earnings for the six months ended 31 December 2025, while simultaneously warning that the escalating conflict in the Middle East poses material risks to South Africa’s fuel supply and broader economy
Headline earnings rose 38.8% to R5.1 billion from R3.7 billion in the prior half-year period, with headline earnings per share climbing 38.5% to 931 cents from 672 cents. The interim dividend was raised to 173 cents per share, an increase of more than 80%.
The earnings improvement was driven by positive contributions of R485 million from Mediclinic, R280 million from Rainbow Chicken, R264 million from fibre operator CIVH, and R166 million from Heineken Beverages. An additional contribution of more than R330 million from TotalEnergies Marketing South Africa was boosted by a once-off Transnet pipeline cost refund
A R240 million decline in the earnings contribution from RCL Foods, attributed to weaker performance in its sugar business, partially offset the gains. The strong results were accompanied by a cautious tone from Chief Executive Jannie Durand on geopolitical risk.
Remgro carries direct exposure to the Middle East through Mediclinic’s operations in the United Arab Emirates. Mediclinic Middle East operates seven hospitals, one day-case clinic and 28 outpatient clinics, with the majority of its operations based in Dubai and Abu Dhabi
“A couple of weeks ago we wouldn’t have been worried because it was just a performing operation, the best operated in the Middle East which as a South African company we’re very proud of. We salute our management teams they’re working closely with the government of the UAE, keeping the hospitals open. Our inpatient volumes seem to be fine, it’s just the outpatient volumes that are not so great at the moment with people not travelling.” – Durand
Remgro stated that the prospects of its UAE healthcare operations are closely linked to the ongoing stability and prosperity of the region, and that the conflict introduces broader risks to global asset prices particularly in an emerging market-weighted portfolio like Remgro’s through the threat of rising inflation and a higher cost of capital
Durand’s stated concern, however, extends beyond the group’s direct assets. “We’re going to have some fuel shortages considering that around 50% of the fuel comes from that region and you can’t just redirect that also we’ve only got one operating refinery,” he said. “It will have an impact not just on our companies but on SA Inc. The people are not in a great position for higher inflation, food prices, all of that we could go back to some of the COVID days which will not be good.”
