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Fri 1 Aug 2025
Close: 187c 
Day's move: 1c (0.54%)
Volume: 2 210 499
Trades: 298
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Revenue for the period grew by 2% to R15.4 billion (R15.0 billion) with gross profit lowering by 1% to R2.75 billion (R2.77 billion). Operating profit was 9% less at R1.1 billion (R1.2 billion) and profit for the period attributable to owners of the parent declined by 23% to R405 million (R525 million). Additionally, headline earnings per share decreased by 21% to 17.2c per share (21.8c per share).
Dividend declaration
The board has historically not declared an interim dividend. In consideration of the still uncertain macroeconomic outlook and the company’s objective of reducing net debt levels, the board believes it is prudent to maintain this approach.
Group outlook
While the macroeconomic environment is likely to remain uncertain, we are cautiously optimistic about the medium to long-term outlook for South Africa under the GNU and we are positive about the prospects for the group.
The group’s results for the period were affected by two material items, namely the near-term operational and financial effects of the ramp-up of PG Bison’s MDF line and lower South African vehicle assembly volumes. We consider these items to be temporary in nature and expect their effects to ease from the second half of FY25 into FY26.
We remain focused on the following key priorities, which we believe will underpin the group’s performance over the near to medium term:
- Value realisation from our investments: We have invested significantly for future growth and we are committed to realising the value thereof. PG Bison’s new MDF line is the largest of our most recently completed major capital projects and, with a c. 33% increase in the division’s production capacity, offers compelling growth opportunities for the group.
- Addressing underperformance: We made good progress with addressing areas of underperformance in the group, which related mainly to Unitrans. With the conclusion of the restructuring and organisational redesign in November 2024, we are targeting a c. R300 million improvement in operating profit for the division, relative to FY23, over the medium term.
- Reducing net debt: We are targeting a R1 billion reduction in net debt in FY25, with further reductions thereafter, enabled by:
lower capital expenditure in our manufacturing divisions (relative to FY24), as our major capital projects were completed;
cash flow contribution from these projects; and
an expected improvement in Unitrans’ performance.
The reduction in net debt, combined with expected lower interest rates, will reduce risk, increase balance sheet flexibility and
enhance earnings.
Results Webcast
A live webcast of the interim results presentation will be broadcast at 10:00 a.m. (SAST) on Thursday, 27 February 2025. The webcast registration link is www.corpcam.com/KAP27022025 and can be accessed on the KAP website at www.kap.co.za.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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