AECI has reported a 12% drop in full-year profit, weighed down by a high interest bill as well as short-term funding to accommodate increased working capital levels during the year, to support revenue growth.
The explosives and chemicals group is looking to double the profitability of its core mining and chemicals business by 2026 and to become a global, top-three integrated mining explosives and chemicals solutions provider by 2030.
For the reporting period to end-December, its headline earnings per share (HEPS) dropped 12% to R11.32 due mainly to the prevailing high interest-rate environment.
However, its core mining and chemical businesses fared reasonably well against the slump in commodity markets, which has forced several mining houses to review their cost structures.
AECI Mining’s revenue rose 8.4% to R19.6bn, with the record earnings before interest and taxes (ebit) of just more than R2bn up 18% year on year. The improved performance in the mining business was driven by new international contracts.
However, revenue from its SA-based chemicals business softened 4% to R8.15bn while ebit dropped 8% to R515m.
“It is immensely gratifying that, as we celebrate a century of unwavering dedication and pioneering excellence, we continue to deliver positive results, in spite of the prevailing challenging environment,” CEO Holger Riemensperger said in a statement on Wednesday.
“The encouraging performance, driven by our core business of AECI Mining, underscores our strategic decisions.”
The company declared a final dividend of R1.19 per share, which was down 79% from the year-ago period.
Its share price was up 1.74% to R94.34 in early trade on Wednesday on the JSE, reducing its losses for the year to date to 14%.
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