Johann Rupert, South Africa’s wealthiest individual, has through his leading investment holding company, Remgro Limited, declared a substantial dividend payout of $48.2 million for its shareholders.
This development comes despite a significant decline in the company’s profit at the close of its 2023 fiscal year.
According to the financial statement recently released by Remgro, the board of directors proposed a final dividend of R1.6 ($0.085) per share.
This figure is a notable increase from the R1 ($0.053) per share dividend paid out the previous year.
Subject to dividend tax, this translates to a substantial payout of R909.24 million ($48.24 million), marking a 60-percent increase from the R568.27 million ($30.15 million) distributed to shareholders in 2022.
This commendable dividend payout is particularly striking given the challenging operating environment that substantially impacted the company’s profit during the review period.
Rupert’s Remgro records profit decline
Remgro experienced a 26.8-percent decrease in total earnings, dropping from R13.14 billion ($697.25 million) in 2022 to R9.62 billion ($510.47 million) in 2023.
This decline is primarily attributed to Remgro’s portion of the profit realized by OUTsurance Group through the unbundling of its investments in Discovery and Momentum Metropolitan, and the disposal of its investment in Hastings.
However, these were partially offset by the profit realized on the Distell/Heineken transaction during the year under review.
Intrinsic Net Asset Value
Despite the profit decline, Remgro’s intrinsic net asset value per share witnessed a robust increase of 16.6 per cent, rising from R213.1 ($11.31) as of 30th of June, 2022, to R248.47 ($13.2) as of June 30, 2023.
The group’s closing share price on the 30th of June, 2023, stood at R147.05 ($7.8), representing a substantial 40.8 per cent discount to the intrinsic net asset value.
Johann Rupert’s Business Ventures
Johann Rupert is renowned for his extensive business portfolio. Remgro Limited, originally established in the 1940s by Rupert’s father, the late Anton Rupert, has evolved significantly over the years.
It currently includes investments in diverse sectors such as healthcare, consumer products, financial services, infrastructure, industrial, and media industries.
Under Rupert’s astute leadership, Remgro continues to be a significant player in South Africa’s investment landscape.
Rupert holds all the issued unlisted B ordinary shares of the company and is entitled to 42.91 per cent of the total votes,
His Rise to Wealth
Johann Rupert’s journey to becoming South Africa’s richest man is a tale of strategic investments, business acumen, and a deep understanding of the consumer market.
His wealth is largely attributed to his stakes in luxury goods company Richemont, which owns brands like Cartier IWC, and Vacheron Constantin, and his holdings in Remgro Limited.
Rupert’s ability to diversify his investments across various lucrative sectors has been pivotal in building his wealth, making him a prominent figure in the global business community.
His commitment to innovation and excellence has not only contributed to his wealth but has also played a significant role in shaping the economic landscape of South Africa and beyond.
Rupert’s receives dividends from Richemont
Reports say Rupert received a substantial dividend payout of CHF 204.62 million ($233.2 million) from his stake in Richemont.
The disbursement took place on the 6th of September, following shareholders’ approval during the impending annual general meeting of the luxury goods conglomerate.
His portfolio as of 31st of March 2023, includes 6,263,000 Richemont “A” shares and 522,000,000 Richemont “B” shares, collectively constituting 10.18 per cent of the company’s total capital and 51 per cent of its voting rights.
The South African billionaire recently complained that inflation was beginning to impact the demand for luxury goods in Europe.
Johann Rupert and Aliko Dangote: The battle of Africa’s richest man
Johann Rupert and Aliko Dangote are two African billionaires competing for the top spot since Forbes revised its richest list due to turbulent currency fluctuations in June.
Newsmen reported in August that Johann Rupert slipped behind Nigerian Billionaire Aliko Dangote, as his net worth slumped below $11 billion to $10.2 billion, while Dangote’s wealth rebounded to $11 billion.
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