Hulamin: Profit up 112%, despite volumes down 7%

Hulamin has announced its interim results for the period ended 30 June 2023. Results Headlines include:

• EBIT up 112% to R473 million, despite volumes being down 7% at 95 588 tons.
• Normalised headline earnings per share up 94% to 70 cents.
• Local sales at 47% making up 42 607 tons with can stock at 58% of local sales.
• Total can stock at 49% up 6% from prior period.
• Normalised EBITDA increased by 95% to R425 million.
• R141 million capital expenditure 57% up from prior period.

Geoff Watson, Hulamin’s Interim Chief Executive Officer, commented: “Improved trading results experienced in FY 2022 continued into H1 2023. The Group continued to focus on its simplification strategy and capitalising on attractive market conditions through reprioritised mix with a focus on CAN products, weaker average exchange rate and stable cost base which contributed positively to half-year normalised earnings.

Hulamin Extrusions posted a recovery with volumes growing by 10%, largely influenced by recovery of the automotive sector and growth in renewable energy sector sales which was negatively impacted by lower LME pricing. Hulamin expects market conditions to be softer in the second half. There was a two-week strike which will impact H2 2023 sales but should be viewed in the context of a softer market in H2 2023. The strategy of the business remains unchanged. The Group expects to benefit from a more stable plant performance, a weaker exchange rate than H2 2022 and an improved product focus. Debt reduction will remain a priority.”