Published: November 15, 2011
Several of South Africa’s leading listed corporates have defied the downturn to report impressive figures in their latest results.
Household goods retailer Lewis Group described a “challenging trading environment” marked by “inconsistent sales patterns” during the six months to October. Nonetheless, revenues rose by 6.7% and the gross profit margin hit 38.5% from 35.1%.
Barloworld, a South African industrial group with interests in equipment, automotives and logistics, revealed a 51% increase in operating profit to R2.3bn (US$282mn) in the year to October 2011.
Chief executive Clive Thomson told shareholders that growth in the mining sector boosted profits in the group’s equipment businesses in southern Africa and Russia, while the handling division showed “a substantial turnaround” from the prior year.
Poultry producer Astral Foods saw its own profits rise by 15% to R675mn during the same period on the back of what chief executive Chris Schutte called “superior poultry efficiencies”. Group financial director Daan Ferreira added that the company’s “prudent cash management culture” had helped it achieve particularly low gearing – its net debt to equity ratio fell to 3% from 9% a year prior.
Not all African corporates have enjoyed such fortunes. Construction company WBHO saw revenues drop by 2.9% to R14.9bn and profits fall by 14.5% to R1.1bn – the first fall in profits since the company listed in 1996. The company described it as a “solid performance in a challenging year”.
Lewis Group, Barloworld, Astral Foods and WBHO all feature in this year’s EMEA 300, EMEA Finance’s ranking of the leading listed companies across the region based on market capitalisation.