Nu-World Holdings eyes offshore growth as local spending falls
The group says it is continuing its strategy of internationalisation as SA's weak economy weighs on local spending
Consumer electronics group Nu-World Holdings says it will continue its strategy of pursuing growth offshore, as the Covid-19 pandemic puts even more pressure on the disposable income of SA’s embattled consumers.
Headline earnings fell 19.2% to R75.9m in the group’s six months to end-February, with Nu-World saying its SA operations were under the most trading pressure in a time of “unprecedented global and local events”.
Headline earnings is a widely used profit measure in SA, stripping out exceptional items to give a better indication of the underlying performance of a business.
“Nu-World’s interim results should be considered within the context of the exceptionally difficult trading conditions, which have persisted in SA for a number of years,” the group said.
The group said its strategy of internationalisation will continue. Its SA operations contributed 47.9% of operating profit in the six months to end-February, from 63% in the prior comparative period.
Trading conditions in Australia were also difficult, with a weakening of the Australian dollar adding additional pressure, the group said.
The group, which manufactures, assembles and distributes appliances, including televisions, has subsidiaries in Australia, Brazil, Dubai, Hong Kong and Lesotho.
In afternoon trade on Wednesday, Nu-World’s share was unchanged at R25.50, giving it a market capitalisation of R577m.
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