Nu-World Holdings, which is in the business of importing, assembling, marketing and distributing branded consumer goods, reported a 5% decline in earnings for the six months ended February.
The company reported headline earnings per share of 147.1c compared with 154.9c a year ago. Revenue declined 2.8% to R969.5m while attributable profit was 5.3% lower at R31.5m.
The company said on Thursday that sales came under pressure locally for the six-month period; however, international sales managed to show a 6.6% growth in turnover.
Margins locally declined due to increasing cost pressures, high interest rates, high shipping costs, devaluation in the rand, load-shedding and fuel costs.
Business confidence continued to remain subdued, causing downward pressure on sales volumes. It said the environment in certain sectors in which it trades had faced pressure, especially consumer electronics (television sets).
“Overall, lower sales volumes and higher input costs have had a marginal adverse effect on profitability,” it said.
The group’s offshore operations showed a 6.6% increase in revenue and a 5.3% increase in after-tax income. The increase in revenue was primarily due to opening new markets and expansion in existing markets. Profitability was maintained despite tough competitive trading conditions.
The group has subsidiaries in Australia, Brazil, Dubai UAE, and Hong Kong.
The directors are proactively working to increase market penetration in many regions and have appointed additional sales and marketing personnel in these areas.
“Nu-World has made good progress in internationalising our group over the last number of years and we believe that our international business will continue to grow and expand,” it said.
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