Hu­lamin raises its sales vol­umes by 8%

The Star Early Edition - - COMPANIES & NEWS - Sandile Mchunu

HU­LAMIN ex­pected the mo­men­tum in the first half of 2017 to con­tinue into the sec­ond half. The com­pany yes­ter­day re­ported an 8 per­cent in­crease in sales vol­umes for the six months to end June.

The group said even though the mar­ket con­di­tions in South Africa re­mained de­pressed, it had man­aged to im­prove on last year’s per­for­mance. “How­ever, de­spite the over­all man­u­fac­tur­ing econ­omy de­clin­ing, Hu­lamin in­creased its lo­cal bev­er­age can pack­ag­ing vol­umes by 133 per­cent, al­beit from a rel­a­tively low base in the cor­re­spond­ing pe­riod, with a con­se­quent in­crease in scrap pur­chases,” the group said.

Hu­lamin chief ex­ec­u­tive Richard Ja­cob said: “Hu­lamin has de­liv­ered a strong man­u­fac­tur­ing per­for­mance and im­proved fi­nan­cial re­sults, de­spite dif­fi­cult mar­ket con­di­tions and the rand be­ing 14 per­cent stronger com­pared to the cor­re­spond­ing pe­riod in 2016.”

Sales vol­umes in­creased 8 per­cent and the group im­proved over­all and per unit cost per­for­mance, he said.

The group in­creased its turnover 3 per­cent to R5.1 bil­lion, marginally up from R4.9bn, driven by the higher sales vol­ume and an av­er­age US dol­lar alu­minium price that was 22 per­cent higher than the com­par­a­tive pe­riod.

Ja­cob said the in­crease in th­ese fac­tors more than com­pen­sated for the 14 per­cent strength­en­ing of the rand to av­er­age R/$ 13.22 against R/$ 15.46 in 2016.

Earn­ings be­fore in­ter­est and tax­a­tion were 11 per­cent higher at R286 mil­lion, while net in­ter­est charges de­creased 18 per­cent to R39m, driven by lower lev­els of debt.

The com­pany said its debt now stood at R656m com­pared with R952m in June 2016. Ba­sic head­line earn­ings per share were 56 cents a share, 16.6 per­cent higher, from 48c the pre­vi­ous pe­riod.

Dur­ing the pe­riod the group also saw its Hu­lamin ex­tru­sions per­form­ing con­sis­tently com­pared with the prior pe­riod. Man­u­fac­tur­ing con­ver­sion costs in rolled prod­ucts were 1 per­cent lower in ag­gre­gate and 8 per­cent lower on a per unit cost ba­sis, ben­e­fit­ing from lower US dol­lar de­nom­i­nated costs, im­proved cost con­trols and in­creased us­age of com­pressed nat­u­ral gas.

The group did not pay a div­i­dend as it pays div­i­dends on an an­nual ba­sis.

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