Rombat fine weighs on Metair’s earnings

A European regulatory fine on Rombat and other one-off items have weighed on automotive components and aftermarket group Metair’s full-year earnings.

The group’s revenue increased by 57% to R17.9bn in the year ended December, driven by the inclusion of Hesto from April 2025 and AutoZone for the full year.

The fine relates to a €20.2m (about R383.8m) penalty imposed by the European Commission on Romanian battery manufacturer Rombat, in which Metair owns a majority stake. The group is appealing the fine.

Excluding the Rombat fine, operating profit before capital and exceptional items increased by 99% to just over R1bn, while headline earnings per share increased by 82% to 191c.

However, including the Rombat fine, operating profit before capital items increased by 23% to R674m and the group reported a headline loss per share of 21c, the group said on Wednesday.

Including discontinued operations, Metair reported a headline loss per share of 67c, narrower than the 232c loss of a year ago.

Cash generated from operations improved by 27% to R1.88bn. No dividend was declared.

The group closed some operations during the year, including the industrial division of First Battery and Dynamics Batteries in the UK, as part of a “strategic refocus on the African market”.

Metair said previously its financial position improved after the completion of a capital restructuring in 2025, including the refinancing of R3.3bn of South African debt and R1.4bn linked to Hesto. Repayment terms were aligned more closely with expected cash flows.

Metair said it lodged an appeal against the Rombat fine on February 27. It said previously it rejected the presumption that it exercised decisive influence over Rombat.

The fine relates to historic industry-wide conduct in 2004–2017 regarding automotive battery pricing premiums. The conduct predates Metair’s acquisition of Rombat in 2012, it said.

Looking ahead, the group said it plans to: