Afrimat has released its results for the year ended February 2023, reporting a 4.9% increase in revenue to R4.9 billion (2022: R4.7 billion).
“Diversification, increased volumes from the mines coming online and efficiency improvement initiatives remain the cornerstone of our strategy and are used to counter macro-economic impacts beyond management’s control,” comments Group CEO, Andries van Heerden.
He added that strategic initiatives which contributed to the group’s performance included the successful commissioning of the Jenkins iron ore mine, the turnaround of the Nkomati anthracite mine and ongoing continuous improvements at existing operations.
The company’s operating profit decreased by 13.3% from R1.1 billion to R1 billion resulting in its operating profit margin declining from 23.7% to 19.6%.
A rise in future volumes, as these mines reach a steady state, is expected in the coming year.
Headline earnings per share declined by 15.7% from 542.9 cents to 457.6 cents.
Net cash from operating activities of R1 billion was generated, as well as R680 million from a successful equity raise during the year, resulting in the net debt: equity ratio decreasing from 12.1% to 4.4%, this is aside from the R963 million was advanced into various capital investments during the year.
Afrimat declared a final dividend of 110 cents per share.