Hudaco Industries Reports 6.3% Revenue Drop in H1 2024

  • Revenue Decline: Hudaco's revenue fell by 6.3% to R3,983 million in H1 2024.
  • Profit Decrease: Operating profit decreased by 11.0% to R414 million.
  • Dividend Stability: Interim dividend remains steady at 325 cents per share.

Hudaco Industries Limited released its unaudited interim results for the six months ended May 31, 2024. The results show a mixed performance with some declines in key metrics.

Revenue and Profit Decline

Hudaco’s revenue decreased by 6.3% to R3,983 million from R4,250 million in the previous period. Operating profit also saw a decline, falling by 11.0% to R414 million from R465 million.

Metric31 May 202431 May 2023% Change
Revenue (Rm)3,9834,250-6.3
Operating Profit (Rm)414465-11.0

Earnings Per Share

The company reported a decrease in comparable earnings per share, headline earnings per share, and basic earnings per share. All three metrics fell by 15.3% to 785 cents from 926 cents.

Metric31 May 202431 May 2023% Change
Comparable EPS (cents)785926-15.3
Headline EPS (cents)785926-15.3
Basic EPS (cents)785926-15.3

Dividend Announcement

Hudaco declared an interim cash dividend of 325 cents per share. The dividend is payable on August 19, 2024, to shareholders recorded by August 16, 2024. The dividend remains unchanged from the previous year.

Dividend Details20242023
Interim Dividend per Share (cents)325325

Dividend Timetable

The timetable for the interim dividend payment is as follows:

  • Last day to trade cum dividend: August 13, 2024
  • Trading ex dividend commences: August 14, 2024
  • Record date: August 16, 2024
  • Payment date: August 19, 2024

Share certificates may not be dematerialised or rematerialised between August 14, 2024, and August 16, 2024, both days inclusive. The certificated register will be closed during this period.

Analysis and Outlook

Revenue Decline

Hudaco faced a challenging economic environment in the first half of 2024. The 6.3% decline in revenue highlights these challenges. The company’s diversified product range and market reach helped cushion the impact, but not enough to avoid a revenue drop.

Profitability Pressures

The 11.0% decrease in operating profit reflects increased cost pressures and competitive market conditions. Hudaco must streamline operations and enhance cost efficiency to maintain profitability.

Stable Dividend Amidst Earnings Decline

Despite a 15.3% decline in earnings per share, Hudaco maintained its interim dividend at 325 cents per share. This stability in dividend payouts indicates a strong cash flow position and confidence in future prospects.

Positive Net Asset Value Growth

A 5.7% increase in net asset value per share to 11,427 cents is a positive sign. It reflects the company’s ability to generate shareholder value despite a challenging environment.

Future Prospects

Hudaco’s future performance will depend on macroeconomic conditions and internal efficiency improvements. The company aims to leverage its diverse product portfolio and market presence to navigate the current economic landscape.

Strategic Focus

Hudaco will focus on operational efficiency, cost control, and strategic growth initiatives. Enhancing market penetration and exploring new opportunities will be key priorities.

In conclusion, Hudaco Industries Limited reported mixed interim results for the six months ended May 31, 2024. While revenue and profit declined, the company maintained its dividend and saw growth in net asset value per share. Investors should review the full announcement for detailed information and strategic insights.

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