Afrox cuts final dividend by more than half as earnings fall
The company says growth in strategic markets, price cost inflation recovery and productivity gains from various efficiency projects have helped mitigate the cost increases
Afrox, a supplier of gases and welding products, more than halved its final dividend for the year to end-December as earnings declined, partly due to higher costs. The group said on Wednesday that it would pay a final dividend of 25c a share, from 54c a year earlier. That brings its total dividends for the 2018 financial year to 77c, from 100c previously. Afrox’s net profit slumped 28.3% to R457m in 2018, partly due to higher depreciation and one-off charges, including a restructuring provision of R52m and R55m in impairments against two air-separation units that had repeatedly broken down. Afrox announced its latest restructuring project, partly aimed at reducing fixed costs, in December. “Despite these adverse movements in group operating profit, the underlying growth in strategic markets, solid price cost inflation recovery and continued productivity gains from various efficiency projects, helped mitigate the cost increases,” it said. Revenue was up 6.2% at R6bn thanks to higher ...
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