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Blu Label Unlimited is pushing to show investors it can generate returns, having resumed paying dividends during the year as well as launching a share buyback scheme.This, as transactions related to the listing of Cell C weighed on the group’s full-year earnings to end-May 2026. The group reported falls across its main financial performance indicators, saying results were “materially impacted by a series of strategic transactions, most notably the acquisition of control of Cell C, the subsequent pre-listing restructuring, which included the disposal of Comm Equipment Company (CEC), and the partial disposal of Cell C, which resulted in it transitioning from a subsidiary back to an associate”.The prepaid voucher and ticketing group reported a 7% drop in revenue to R13.052bn, while swinging to a loss before interest, tax, depreciation and amortisation of R4.765bn. Core HEPS fell 81% to 88.2c for the period. Even so, the group heralded the listing of Cell C as a major step in simplifying its business structure.“The transaction derisked the group’s exposure, reduced complexity and enhanced earnings visibility, while Blu Label’s retained shareholding preserves strategic optionality,” said the company.“Cell C’s listing introduces transparent market valuation, strengthened governance and independent access to capital, reinforcing Blu Label’s role as a strategic shareholder focused on long-term value creation rather than operational support.”Excluding the Cell C-related items, Blu Label would have reported revenue of R9.4bn, gross income of R2.6bn, earnings before interest, tax, depreciation and amortisation (ebitda) of R923m and net profit after tax of R677m, it said.In essence, its core business did well in the period. To demonstrate this, the group declared a final dividend of 10c per share during the period, bringing the total dividend for the year to 53.56c. The board has also approved “the commencement of a share repurchase programme, reflecting confidence in the group’s financial position and a disciplined approach to returning capital where this is value-accretive”.Blu Label has received authority to move forward with this programme at a November 2025 shareholder meeting. Joint CEOs Brett Levy and Mark Levy said: “Our priorities for the year ahead are straightforward: generate cash, allocate capital with discipline and execute against the opportunities already in front of us. Blu Label’s scale, procurement strength, data capability and distribution reach give us a strong base from which to navigate a difficult consumer environment and build sustainable shareholder value.”Business Day
