Heineken Beverages has returned a profit of R155 million to Remgro’s headline earnings for the six months ended 31 December 2025, reversing the R11 million loss recorded in the comparable period a year earlier and marking a significant turn in the Dutch brewer’s South African operation
Remgro, the JSE-listed investment holding company chaired by Johann Rupert, holds an 18.8% stake in Heineken Beverages Holdings Limited
The investment dates to April 2023, when Heineken Beverages was formed from the merger of Heineken South Africa, Distell, and Namibia Breweries, Remgro entered the arrangement having previously held a substantial interest in Distell
The early years of that position were difficult. Beer volumes came under sustained pressure as South African consumers shifted away from Heineken Beverages’ more premium labels among them Amstel and Heineken Silver toward cheaper alternatives, a pattern that forced a significant write-down of the South African business and weighed heavily on Remgro’s consumer products segment, As recently as the six months to December 2024, Heineken Beverages’ contribution to Remgro’s headline earnings still amounted to a loss of R11 million
The latest results suggest the recovery has taken hold. Remgro noted that once accounting-related charges tied to the original merger are set aside, Heineken Beverages’ contribution to Remgro’s earnings rose by more than 200% to R207 million.
In its results commentary, Remgro described the performance as driven by better profit margins and tighter cost control. Overall sales grew modestly, though wine and spirits volumes in South Africa remained soft. Beer was the clear bright spot
Volumes grew in the mid-single digits, with Amstel leading the way, The Heineken brand also gained ground in certain export markets, Windhoek performed well in Namibia, and the Bernini brand posted double-digit growth
The turnaround at Heineken Beverages contributed to a strong set of results across Remgro’s broader portfolio of investments. Earnings per share rose 38.5% to 931 cents, and the company’s net asset value per share, a measure of what Remgro’s total investments are worth grew 1.6% to R297.03. Remgro declared a half-year dividend of 173 cents per share, 80.2% higher than a year earlier
Remgro cautioned that the broader environment remains uncertain, noting that the ongoing conflict involving the United States, Israel, and Iran adds risk to global markets particularly for a company like Remgro, which invests heavily in emerging markets where such shocks tend to hit harder through rising prices and higher borrowing costs
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