Hulamin final results December 2018

Revenue from contracts with customers for the year increased to R11.534 billion (2017: R10.304 billion), gross profit decreased to R867.9 million (2017: R1.132 billion), operating loss came in at R949.9 million (2017: profit of R498.4 million), net loss for the year attributable to equity holders of the company was recorded at R773.4 million (2017: profit of R303.8 million), while headline earnings per share attributable to ordinary equity holders of the company lowered to 91 cents per share (2017: 95 cents per share).

The board of directors of Hulamin ("the Board") has declared a final dividend of 18 cents per share for 2018 (before withholding tax) (2017: 15 cents per share) payable to registered shareholders of Hulamin on the Record Date, Friday, 12 April 2019.

Company prospects
Hulamin remains focused on continuing the improved operational, sales and manufacturing performance in 2019, while focusing on executing its responsible growth plans. The direction that the Rand takes in 2019 will continue to impact financial performance as a result of Hulamin's large foreign currency sales exposure.

The local and international long-term outlook for aluminium beverage packaging demand has improved significantly since 2017. This follows the steps being taken by more than 16 major countries and cities to ban single-use plastics in packaging, including the UK, France, Germany and Canada. As a result, a number of Hulamin customers are seeking larger volumes and longer term can stock contracts on firmer prices.

In 2019, Hulamin will commence operating an agency and technical service trading business, reselling a major aluminium rolling mill's can stock products to Hulamin customers. This will complement Hulamin's Pietermaritzburg product offering and increase sales revenues. This new operation is expected to have a positive impact on profitability and cash flows.

Trade relations between the USA and China remain uncertain. There are also signs of a cyclical slow-down in US (aluminium) manufacturing, driven partially by the slowing of aerospace build rates. Hulamin has consequently increased its efforts in its other markets (such as Europe, Australasia, Africa and South America) to minimise these effects.

2019-03-19 07:44:52