Despite surging fuel and raw material prices and supply chain disruptions, including violent protests on the country’s main highways, logistic operator OneLogix has reported that group revenue returned to or overtook prepandemic levels.
On Thursday, the company reported trading profit was up 30% to R178.7m. Revenue jumped 24% to R3.07bn, boosted by its primary product logistics segment and an increase in volumes handled. Cross-border transport volumes also increased 35% from the prior year to R615.3m, OneLogix said.
The logistics and supply chain group, which is looking to delist, said it had experienced a challenging trading environment during the year to May 31, which was worsened by reduced economic activity during and after the civil unrest in KwaZulu-Natal in 2021.
It said the situation was further compounded by the cyberattack on Transnet’s operations, which curtailed the flow of goods in to and out of SA.
Headline earnings per share were down 69% to 3.4c.
Speaking to Business Day after the release of its results, OneLogix CEO Ian Lourens said it was becoming tougher to run a logistics operation as the business was unable to pass on some of the rising costs, saying the value chain was simply unable to absorb the increases.
“The biggest cost is fuel, and we don’t always recover the increases to a satisfactory extent,” said Lourens, adding the fuel price went up 32% in the year.
OneLogix operates several businesses that include transporting cars and heavy-duty trucks for manufacturers as well as hauling liquids and gases. It also provides warehousing facilities for importers and exporters of bulk materials.
The group said it had invested R159.9m in its operational infrastructure, including upgrading its fleet and IT assets during the period.
Lourens bemoaned the unabating protests on SA’s major highways, particularly on the strategic N3, saying they continued to present a serious challenge.
The freight industry has been hit by a string of protests, where drivers and civilians have blockaded the crucial corridor connecting SA’s economic hubs of Gauteng and KwaZulu-Natal, calling for an end to the employment of foreign drivers in the sector.
The company did not declare a dividend, but said it would keep shareholders updated on matters around the delisting.
The share price was unchanged at R2.93 on Thursday.
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