Reunert increases operating profit by 15%
Monday, 23 November 2015
Reunert, with its strong brands, diversified customer bases and quality value offerings, delivered a solid performance in the financial year, despite the challenges in the current South African macro-economic environment. The economic growth rates achieved by the South African economy have slowed materially from those forecast for 2015 and are not expected to improve in the medium term.
Revenue for the year increased by 7% to R8,3 billion (2014: R7,8 billion). Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 14% to R1,3 billion (2014: R1,1 billion). Operating profit for the year grew by 15% to R1,2 billion (2014: R1,0 billion). Profit for the year decreased by 49% to R1,0 billion (2014: R2.0 billion). Further more, headline earnings per share from continuing operations rose by 47% to 576 cps (2014: 391 cps).
Dividend Notice is hereby given that a gross final cash dividend No 179 of 302 cents per ordinary share (2014: 275 cents per share) has been declared by the directors for the year ended 30 September 2015.
The business drivers of the group's performance continue to be challenged by Reunert's strong concentration in the South African market. Accordingly, the future growth prospects of the group are likely to be constrained by the domestic macro-economic environment. The group's future prospects are augmented by recently secured long-term contracts, specifically in applied electronics. These revenues, with a strong, hard currency exposure, are expected to bolster operational performance. Reunert's strengthened financial position and significant capacity to leverage its balance sheet, positions it well to execute its growth strategy.
For more on the results go to http://reunert.co.za/financials/2015/audited_2015/index.php