KAP expects full-year earnings per share to double
18 August 2024 - 18:29
byNoxolo Majavu
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KAP Industrial’s PG Bison helped lift the group’s performance. Picture: SEBABATSO MOSAMO
Diversified industrial group KAP’s full-year earnings per share are expected to more than double after five of its six divisions performed better than the previous year.
In a statement on Friday, the group said earnings per share would be 41.8c-45.8c, representing an increase of 96%-115% compared with a year ago. Its 2023 financial year earnings included a R570m noncash impairment of intangibles, net of taxation, related to its logistics business, Unitrans.
Its headline earnings per share, which exclude one-off items, are expected to decline as much as 8% to 43.3c-47.3c, it said.
The company's share price closed up 5.46% at R3.09 on Friday.
KAP manages a diverse range of businesses including wood-based decorative panels, sleep products, automotive components, polymers, supply chain services and road safety. Its operations include PG Bison, Safripol and Unitrans, with smaller ventures such as Feltex and Restonic. Optix is a small start-up within the group.
KAP, which has a market capitalisation of R7.7bn, showed resilience in a tough market, with five of its six divisions performing better than the previous year, it said. The only exception was Safripol, which struggled due to a downturn in the global polymers industry.
The Stellenbosch-based company has been grappling with weak global polymer margins and excessive load-shedding, which previously affected operations. It has also been hit by a challenging operating environment with high inflation, elevated interest rates and subdued economic growth contributing to lower consumer spending.
The group said it had completed its major capital projects in the second half of the 2024 financial year. These projects were expected to boost future earnings and support a planned reduction in debt.
After a disappointing performance in 2020, KAP restructured Unitrans, which had about R6bn in assets. The restructuring involved consolidating Unitrans SA, Africa and Passenger, exiting low-return activities, selling underused assets and streamlining infrastructure.
The company is expected to release its annual results on August 30.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
KAP expects full-year earnings per share to double
Diversified industrial group KAP’s full-year earnings per share are expected to more than double after five of its six divisions performed better than the previous year.
In a statement on Friday, the group said earnings per share would be 41.8c-45.8c, representing an increase of 96%-115% compared with a year ago. Its 2023 financial year earnings included a R570m noncash impairment of intangibles, net of taxation, related to its logistics business, Unitrans.
Its headline earnings per share, which exclude one-off items, are expected to decline as much as 8% to 43.3c-47.3c, it said.
The company's share price closed up 5.46% at R3.09 on Friday.
KAP manages a diverse range of businesses including wood-based decorative panels, sleep products, automotive components, polymers, supply chain services and road safety. Its operations include PG Bison, Safripol and Unitrans, with smaller ventures such as Feltex and Restonic. Optix is a small start-up within the group.
KAP, which has a market capitalisation of R7.7bn, showed resilience in a tough market, with five of its six divisions performing better than the previous year, it said. The only exception was Safripol, which struggled due to a downturn in the global polymers industry.
The Stellenbosch-based company has been grappling with weak global polymer margins and excessive load-shedding, which previously affected operations. It has also been hit by a challenging operating environment with high inflation, elevated interest rates and subdued economic growth contributing to lower consumer spending.
The group said it had completed its major capital projects in the second half of the 2024 financial year. These projects were expected to boost future earnings and support a planned reduction in debt.
After a disappointing performance in 2020, KAP restructured Unitrans, which had about R6bn in assets. The restructuring involved consolidating Unitrans SA, Africa and Passenger, exiting low-return activities, selling underused assets and streamlining infrastructure.
The company is expected to release its annual results on August 30.
majavun@businesslive.co.za
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