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Metair - trading update and statement
Trading update
The six months ended 30 June 2025 ("H1 2025" or the "Current Period") were characterised by continued strong progress in strengthening the resilience of Metair's underlying businesses. Building on the progress achieved in 2024, manufacturing and production were further optimised and a stringent focus on efficient project management and operational improvements has resulted in a more flexible operating model, ensuring that the business can deliver optimally to its customers. Measures were successfully implemented to restructure, right size and close certain operations, which enabled the Company to dynamically address market shifts and volume variability. The focus for the Current Period has been on manufacturing excellence in delivering to Original Equipment Manufacturer ("OEM") customers and bedding down the newly-acquired AutoZone Holdings (Pty) Ltd. ("AutoZone") business to enable growth in the aftermarket segment.
Market conditions remained challenging during H1 2025, both for local OEMs and local aftermarket trading. While a reduction in interest rates and easing inflationary pressures provided some macroeconomic relief, persistent uncertainty in both local and global markets continued to weigh on business confidence. As a result, consumer demand remained subdued. Despite these headwinds, it is encouraging to report that volumes at key South African OEM customers have improved and remain in line with forecasts for the Current Period. The continued improvement initiatives at Hesto Harnesses ("Hesto"), the Group's major wiring harness supplier, resulted in higher revenue and improved operating profit.
Operational update
Following a strategic realignment at the end of 2024, including the sale of Mutlu and the acquisition of AutoZone, the Group has restructured its operations into two core segments:
• the OEM Direct Component Manufacturing segment ("OEM Segment"): supplies components directly to original equipment manufacturers; and
• the Aftermarket Parts and Retail segment ("AFM Segment"): primarily focuses on serving the independent aftermarket and retail distribution channels.
Trading statement
In respect of the Group's total earnings, the Company expects to report:
• Headline Earnings per Share ("HEPS") of between 63 cents and 67 cents (H1 2024: headline loss per share of 3 cents); and
• a loss per share of between 90 cents and 95 cents (H1 2024: loss per share of 3 cents) due primarily to the once-off net capital loss relating to the accounting for Hesto as a subsidiary with effect from 1 April 2025.
Earnings guidance from continuing operations
In respect of the Group's earnings from continuing operations, the Company expects to report:
• HEPS of between 69 cents and 72 cents, being a decrease of between 6% and 10% (H1 2024: HEPS of 77 cents); and
• a loss per share of between 80 cents and 90 cents (H1 2024: EPS of 77 cents) due primarily to the once-off net capital loss relating to the accounting for Hesto as a subsidiary with effect from 1 April 2025.
The Results are expected to be published on or about Wednesday, 10 September 2025.
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