Skip to main content

Hulamin’s headline profit to triple

| Supplier news

Hulamin expects a boost of more than 100 percent to its bottom line after an especially good second half.

In the year to December, the listed aluminium producer expects earnings per share to gain at least 127 percent to 116c, while headline earnings per share are expected to more than triple, growing at least at 208 percent to 114c.

Headline earnings per share are a key indicator of a company’s performance as this figure strips out once-off or non-core items.

Normalised earnings per share are expected to gain 107 percent to at least 114c, Hulamin said in a statement on Monday.

The company says it “performed particularly well in the second half of the year, despite the strengthening of the rand, to deliver a record operating profit for the full year”.

This, it says, was achieved in a relatively stable price environment.

It notes Hulamin Rolled Products benefitted from consistent investment in “operational excellence and risk management” to achieve record sales volumes of 214 000 tons for the year.

It showed “strong improvements in yields/recoveries, unit costs and in the mix of high value products, particularly can end stock and heat treated plate.”

Hulamin says this provides a solid base for further focus and improvements going into 2017.

Local sales of rolled products increased to more than 70 000 tons.

“Sales of can body stock improved strongly in the second half after the slow start to 2016. This increase in demand allowed for an increase in scrap purchases and improved utilisation of Hulamin’s recycling capacity in the second half.”

Hulamin adds its Extrusions and Containers units also both performed better in 2016.

The listed company adds its cash flow improved further in the second half and it trimmed net borrowings further by some R350 million after closing at R952 million at the end of June 2016.

“Hulamin is focused on maintaining the positive momentum in the business, increasing rolling margins (selling prices), improving operational performance and making further reductions in manufacturing cost.”

Its results will be published on February 27.

BUSINESS REPORT ONLINE

Pin It

Related Articles

Veggie victory as Joburg High Court sets aside ...

By: Sarene Kloren - IOL Lifestyle A new ruling by the South Gauteng High Court in Joburg has overturned an interim interdict to forestall and prevent the seizure of plant-based meat alternatives from South African retail shelves.

Benylin Paediatric Syrup recalled, investigatio...

By: Given Majola – IOL Business Report The SA Health Products Regulatory Authority (Sahpra) together with the South African manufacturer of Benylin Paediatric Syrup – Kenvue (formerly Johnson & Johnson) – have recalled two batches of the coug...

Tiger Brands invests in a multi-million-rand Pe...

Black Cat, South Africa’s most loved peanut butter brand, has a new home following a R300-million capital investment by Tiger Brands. The new peanut butter manufacturing facility is in Chamdor, Krugersdorp, on Johannesburg’s West Rand.

Eskom price hikes are here — How much more cust...

By: Hanno Labuschagne - MyBroadband Eskom’s latest tariff hikes will see many direct residential customers paying between R168 and R792 more per month on their electricity bills.

Take heed of these new retail trends that emerg...

By Karen Keylock | National Retail Services Manager at Nedbank Commercial Banking South African consumers are under financial strain and, consequently, the way they shop has changed. And with further economic uncertainty expected in the coming ye...