Hulamin returns to profitability in 2021
In its summarised preliminary consolidated financial results for the year ended 31 December 2021, Hulamin has announce its group sales volume increased by 34% to 222 000 tons, revenue increased by 52% to R13 billion and operating profit improved by 760% to R538 million.
Furthermore, free cash flow from operating activities improved 166% to R239 million and basic earnings per share increased by 347% to 192 cents per share.
Richard Jacob, Hulamin Chief Executive Officer said: “Hulamin responded to the tough trading conditions of 2019 and 2020, returning to profitability in 2021. Contributors to this return to profitability include increased volumes, higher realised prices and growth in local sales. The higher Rand London Metal Exchange (LME) Aluminium price contributed measurably, further boosted by utilisation of assessed losses.
Local sales grew by 54%, driven by the growth in the beverage can consumption and the imposition of import duties on aluminium flat rolled products into South Africa.
Following the completion of its turnaround plans in 2020, Hulamin Extrusions performed well in 2021, generating profits for the year, which included the proceeds of the sale of the Olifantsfontein property.
2022 began with solid demand, firmer prices than in recent years and a reasonable Rand/Dollar exchange rate. Should these conditions continue, we expect the healthier trading conditions to persist, albeit without the metal price lag benefits experienced in 2021.”