TURNAROUND COMPLETED
Restructuring helps Afrox grow annual profit and earnings
The group had also started small-scale exports of products into Latin American agro-processing markets
A much leaner Afrox saw the positive results of its 2015 restructuring in the year ended December 2016, while continuing to battle headwinds in the South African economy. The group has pared down staff numbers through retrenchments and natural attrition since 2015 from about 3,000 employees to 2,000 now. This has freed up cash at the same time that operating efficiencies have been improved. Revenue only crept up 1% to R5.5bn in the year, but profit in the period shot up 41% to R600m from R425m previously. Headline earnings per share soared 36%. "The turnaround has been completed and has delivered a step-change in profitability," MD Schalk Venter said on Thursday. Afrox said it had increased earnings before interest, tax, depreciation and amortisation by 23% to R1.24bn, despite a challenging economic environment and past shortages of supplies of carbon dioxide used in drinks manufacture and liquefied petroleum gas (LPG). The group ascribed this to the benefits of the restructuring an...
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