Consol’s maiden results sparkle
Larry Claasen
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Industrial Correspondent
NEWLY listed packaging company Consol yesterday produced positive figures in its first set of results as a listed entity.
This follows consumer goods company AVI’s unbundling of the largest glass-bottle maker in SA, and its subsequent listing on the JSE Securities Exchange SA on Monday.
Consol’s figures for the half-year to December were supported by a buoyant consumer market that saw demand for beverages and food packaging rise during the period.
This saw turnover rise 3,5% to R1,24bn; operating profit rise 8,7% to R279,9m; and attributable profit increase 4,6% to R187m.
The main driver of this growth was the group’s glass packaging operation, which saw volumes grow 2,2%. Excluding the 43% drop in cool-drink bottles, glass volumes rose 7,6% for the period.
Consol attributed the drop in cool-drink bottles to cheap imports taking about 3% market share.
An industrial analyst was impressed by the figures, saying “overall (they were) pretty good”.
He said that while volume growth was “pedestrian”, it followed a period in which Consol substantially increased output.
The analyst was impressed with the way the group grew its operating margin from 21,6% to 22,6%.
He said he expected Consol to continue to do well over the next 12-18 months because there was no discernable threat to the group.
Consol said it expected trading conditions to remain positive, driven by continued good growth in gross domestic product and consumer disposable income.
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