Remgro, an investment holding company listed on the JSE and A2X, reported a 42.3% increase in headline earnings to N$11.14 billion for the year ended 30 June 2026. This growth was largely driven by the improved operational performance of its subsidiary, Mediclinic Holdings. The healthcare group contributed an additional N$1.37 billion to Remgro's earnings. Mediclinic operates three private hospitals in Namibia, located in Windhoek, Swakopmund, and Otjiwarongo.
The increased contribution from Mediclinic was supported by improved operational performance in addition to once-off items in the Switzerland division. These items included a N$511 million tax benefit relating to the impairment of inter-company loans and a N$294 million release of a tariff provision, both attributable to Remgro's share. As a result, headline earnings per share increased 42.2% to N$20.03 from N$14.09.
Remgro's headline earnings growth included material once-off items totalling N$1.023 billion. These items comprised the Mediclinic Switzerland tax benefit and tariff provision release, as well as a N$218 million share of a Transnet pipeline cost refund received by TotalEnergies Marketing South Africa. Excluding these once-off items, Remgro's headline earnings would have increased by approximately 29%, driven by improved operational performances across key investee companies.
Other investee companies contributed to Remgro's earnings growth, including Rainbow Chicken, which added N$610 million, Community Investment Ventures Holdings (CIVH) with N$412 million, OUTsurance Group with N$332 million, and Heineken Beverages Holdings with N$161 million. TotalEnergies contributed an additional N$424 million, mainly due to the Transnet pipeline cost refund and positive stock revaluations.
Higher finance income, resulting mainly from a higher average cash balance following the disposal of Remgro's interest in FirstRand, added N$230 million. Lower finance costs contributed a further N$95 million. However, these gains were partly offset by a N$368 million decline in the contribution from RCL Foods, largely due to weaker performance from its sugar business.
Despite the increase in headline earnings, total earnings declined 56.5% to N$1.438 billion from N$3.303 billion. Remgro attributed the decline mainly to its N$10.042 billion share of impairments recognised by Mediclinic on its Switzerland assets and business. The company's financial performance was also impacted by lower dividends from FirstRand following its disposal.
Remgro declared a final gross dividend of 422 cents per share, compared with 248 cents in 2025. The total ordinary dividend for the year, excluding the special dividend, increased to 595 cents per share from 344 cents. The board also declared a special dividend of 550 cents per share, subject to a 20% dividend withholding tax.
Key points
- Remgro's headline earnings increased by 42.3% to N$11.14 billion.
- Mediclinic's improved operational performance drove the growth in Remgro's earnings.
- Remgro declared a final gross dividend of 422 cents per share.
