Blu Label Unlimited Group reported normalized revenue of ZAR 9.4 billion for the year ended May 31, 2026, alongside a 7% rise in imputed gross revenue to ZAR 99.9 billion. The group posted normalized EBITDA of ZAR 923 million and a net profit after tax of ZAR 677 million, while core headline earnings reached ZAR 681 million, translating to ZAR 0.7533 per share.
The company’s stock declined 3.49% to ZAR 804, extending its 50.4% discount from the 52-week high of ZAR 1,618. Management attributed the drop to broader market conditions rather than operational performance, noting resilience amid a challenging consumer environment in South Africa.
Blu Label’s restructuring of its Cell C investment remained a key focus. The telecom unit was successfully restructured and listed independently on November 27, 2025, with Blu Label receiving ZAR 2.7 billion from selling a 30% stake. The group also recognized a ZAR 5.19 billion loss from Cell C in headline earnings, though this was excluded from normalized metrics. Cell C-related inventory and loans were reduced by ZAR 3.8 billion and ZAR 3.2 billion, respectively, while interest-bearing borrowings fell by ZAR 1.7 billion following the derecognition of the African Bank facility.
Segment performance showed mixed trends. Pinless top-ups surged 15.1% to ZAR 25.1 billion, and universal vouchers rose 22.2% to ZAR 18.7 billion. Prepaid electricity gross revenue increased 4.3% to ZAR 46.2 billion, though electricity commission earnings declined 13% to ZAR 279 million due to tariff-driven volume compression. Ticketing revenue fell 13%, reducing commissions by ZAR 11 million amid softer festival and concert sales.
The company approved a share buyback program on August 25, 2026, with CEO Brett emphasizing its accretive potential given the current share price. Blu Label targets annual dividends of 30% to 50% of core headline earnings from underlying businesses, excluding Cell C, while aiming to return 50% to 70% of direct Cell C cash dividends to shareholders.
CFO Dean highlighted the group’s progress in simplifying operations and reducing complexity, noting that the balance sheet is cleaner and core platforms continue to generate cash. The company expects intangible asset additions to decline to about ZAR 100 million in FY2027, down from ZAR 474 million in FY2026.
