Hulamin improves in 2024, after a period of abnormally weak demand
Pietermaritzburg – Hulamin in its interim results for the period ended 30 June 2024 says that demand for Hulamin products started to improve in H1 2024, especially in Q2 following a period of abnormally weak demand in our export markets since H2 2023 while its local demand remained robust.
The Group continued with its strategic focus on simplifying the product range, increasing scrap utilisation, reducing costs and delivering its market driven capital expenditure to position the business to take advantage of structural growth markets.
As a result, while the first half of 2024’s overall performance was lower than that of H1 2023, it represented a notable improvement compared to H2 2023.
Results Headlines:
- R7 billion turnover down by 6%
- Rolled products sales down 3% to 87 340t due to displaced low margin hot band of 8 757t through simplification in Q1 2023
- Strong local demand with local sales at 55% for rolled products, up 8%
- Normalised EBITDA down by 19% to R343 million as export pricing pressure continued into H1
- Capital investments up 114% to R302 million as market driven capital spend remains our core strategic focus
- Debt to equity at 38.3% being up 10.2%
