Diversified chemicals solutions company AECI’s headline earnings per share (HEPS) more than doubled in the first half, boosted by growth of its international operations.
HEPS for the six months to end-June were up 132% to 604c and an interim dividend of 100c per share was declared.
Revenue from continuing operations was down 2% to R15.69bn, but earnings before interest, tax, depreciation and amortisation (ebitda) from continuing operations increased 24% to R1.58bn.
“I am encouraged by the growth of our international operations and the continued resilience of our core business, particularly in the face of SA’s challenging operating environment which had an adverse effect on our reported results,” said group CEO Holger Riemensperger.
AECI Mining’s international operations delivered improved performance despite the effect of challenging operating conditions and supplier headwinds on its SA-based operations, the group said.
The segment recorded a 14% improvement in an ebitda margin of 15% due to growth in the international business, coupled with stringent cost management, partly offset by operational challenges at the Modderfontein facility and lead azide supply.
AECI Chemicals delivered ebitda of R319m, down from R467m a year ago, with the ebitda margin declining to 7% from 11% before. The division still faces demand and pricing pressures, further compounded by the recognition of expected credit and foreign exchange losses.
The group expected a recovery of volumes in the Asia-Pacific region, the further realisation of value unlock initiatives and internal efficiency programmes to support full-year ebitda.
Though the group continues to progress towards its targeted ebitda run rate in line with its strategic ambition, some delays are expected in achieving the run rate due to unrecoverable lost production volumes at the Modderfontein facility during the first half.
Looking ahead to the second half, strategy execution remains a central focus as the group prepares for growth, drives hard cost savings and focuses on free cash flow generation.
“The company expects to continue in a positive performance trajectory in [the second half of] 2025, supported by the resilience and solid underlying performance of its core businesses. However, the group expects the results to be behind aspirations as a result of delays in the ebitda run rate,” it said.
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