JSE-listed industrial processing, distribution and services company Barloworld, in a trading statement, says group revenue for the 11 months to the end of August declined by 10% year-on-year to R33.6-billion.

Its earnings before interest, taxes, depreciation and amortisation (Ebitda) also decreased by 9% year-on-year to R3.8-billion. The Ebitda margin, however, increased to 11.2%, up from 11.1% in the 11 months to August 31, 2024, but the group's operating profit margin declined to 7.5%, down from 8% in the comparable 2024 period.

The group's Equipment Southern Africa division generated R21.8-billion in revenue, which is 3.9% lower than the R22.7-billion in the prior comparable period. Revenue was driven by strong rental growth and some gains in machine sales, while after-sales revenue declined year-on-year.

Additionally, excluding the currency impact of the stronger rand against the dollar, revenue declined by 1.5% relative to the prior period.

Equipment Southern Africa's Ebitda declined to R2.3-billion from R2.7-billion in the prior comparable 11-month period. The division's Ebitda margin declined to 10.7%, down from 11.8% in the prior comparable period.

Further, Equipment Southern Africa’s order book increased to R3.2-billion from R2.4-billion in the prior year.

Additionally, agricultural and plant machinery supplier Bartrac’s performance has improved from the first half of the year, and positively contributed R116-million to bottom line performance, albeit lower than the R185-million contributed in the prior comparable period.

Meanwhile, Barloworld Mongolia’s strong performance in the prior comparable period has tapered off following delivery of a large order of new machines. The decline in prime product revenue was partially offset by aftermarket growth.

However, this resulted in revenue of $216-million, representing an 8.5% decrease from $236.2-million in the prior period. Barloworld Mongolia generated Ebitda of $45.8-million, up from $44.3-million in the prior comparable 11-month period.

Ebitda margin improved to 21.2%, up from 18.8%. The prior comparable 11-month period also included the $10-million earnout triggered by the Barloworld Mongolia acquisition performance conditions.

However, the firm order book for Barloworld Mongolia declined to $14.2-million in the current 11-month period, from $76.8-million in the comparable period to end August 2024.

The group's Vostochnaya Technica business' revenue declined by 54% to $95.2-million from $207-million in the prior comparable period.

Consequently, the business' Ebitda declined by 22.5% to $10.1-million for the 11 months to end August, from $13.1-million in the prior financial year's comparable period.

Vostochnaya Technica, which distributes equipment in Russia, generated an improved Ebitda margin of 10.7%, up from 6.3% in the prior comparable period.

The business continues to trade above break-even and remains self-sufficient in terms of its funding requirements, Barloworld says.

Further, the group’s consumer industries business Ingrain held up well in a difficult domestic market. It generated revenue of R5.8-billion, or 2.1% lower than the R6-billion in the prior comparable period, owing to lower volumes, which were partially offset by higher selling prices, increasing competition from imports and subdued demand in certain segments.

Additionally, manufacturing costs increased on the back of cyclically higher maize prices, and increasing energy and chemicals costs resulted in Ebitda declining by 9.9% to R635-million, compared with R704-million in the prior year's 11-month period.

During the current period, the group reported net debt of R5.4-billion, which is R1.9-billion higher year-on-year.

Barloworld has conducted a review of its current, committed and uncommitted facilities, as well as the Domestic Medium Term Note programme, and is satisfied with the available headroom across these facilities.

The group maintained adequate headroom for the current period on both offshore and onshore operations, and remains well within its financial covenants, it adds.

Additionally, Barloworld's board will release a trading statement once a reasonable degree of certainty exists concerning the group's financial results for the financial year ending September 30.

It expects to release these annual financial results on or about November 17.