Fast-moving consumer goods company Premier Group expects its capital expenditure programme to average R600 million each for the 2024 and 2025 financial periods. The programme will not only look to boost growth for the JSE-listed firm but also support maintenance across the business. Premier noted that its bakery business will be the primary beneficiary of the expansionary portion of the capex, given the rebuild of its Aeroton bakery in Johannesburg.
Capex for the six months ended September came in at R239 million, most of which (R177 million) was dedicated to maintenance while the rest – R62 million – went to expansionary projects. A divisional breakdown shows that the Millbake segment of the business received the majority of the capex in the first half (R171 million), followed by the Groceries and International segment (R63 million) and then corporate (R5 million