Operational efficiency lifts Afrox
Interims were some of the best results in recent years, says CEO
Afrox has increased revenue and profit as a result of a rise in product volumes, cost recovery through pricing and cost containment. Revenue grew 6.8% to R2.8bn in the six months ended June 2017, despite continuing weakness in SA’s economy, as earnings before interest, tax, depreciation and amortisation (ebitda) rose 10.5%, to R578m. Profit for the period was R296m, from R244m previously. "We’re very pleased with the results," Afrox MD Schalk Venter said on Friday. He said the interims were some of the best results in past years. Venter also said this was the first time the gases group had seen better revenues from both better volumes and prices in the past three years. The ebitda margin improved to 20.7%, from 20% in the 2016 interims. This helped headline earnings per share jump 22% from previously. Afrox is much leaner since a 2015 restructuring ended in December 2016. Matthias Vogt was appointed as chief financial officer and executive director from August 1 after chief financia...
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