Nu-World shares rise on better interim profits
Shares in Nu-World Holdings rose 9.5% to R45.98 on Tuesday after the consumer goods group said profit after tax in the six months to February rose 11.1% to R95.7m.
“The group continued to produce strong results ... despite exceedingly difficult trading conditions and subdued consumer spending and confidence,” said Nu-World, which sells brands that include Sunbeam and Telefunken. Revenue grew 2.3% to R1.7bn.
Nu-World said its SA operations grew sales marginally, but improved operating margins and a reduced interest bill boosted profits.
The company said its consumer electronics division was contending with weak demand and a slowdown in sales for high-end items.
Sales in the liquor business “remained constant”, while the small domestic appliances and white goods units grew sales.
The Australian business “performed well” with strong growth in sales and profitability, Nu-World said.
“Our expanded distribution network, inclusive of e-commerce options and other traditional customers, underscored the operations for the period.”
Sales to Uruguay and the Middle East also rose, while the group was building its distribution networks in India, Pakistan and Sri Lanka, where sales growth had been slower than expected. “However, we are confident that we are gaining traction and orders are growing accordingly” in those markets.