Hudaco Industries generated R1.4-billion from operations for the year ended November 30, 2025, with the group benefitting from a robust, defensive portfolio of diverse businesses in a challenging environment.

Hudaco is a South African group specialising in importing and distributing a range of branded automotive, industrial and electronic consumable products, primarily within the Southern Africa region.

It works in two categories, namely consumer-related products with 12 business, and engineering consumables with 19 businesses.

In a presentation of the group’s results for the period on February 6, CE Graham Dunford said Hudaco achieved “pleasing” results following a very slow start.

Borrowings reduced by R449-million in the second half of the year.

Dividends increased by 9.3% to R11.20 a share for the financial year under review.

Hudaco maintained its gross margin, excluding acquisitions, and its operating profit margin increased from 12% to 12.5%.

Dunford highlighted that the Brigit Fire and Plati-Weld acquisitions continue to perform well. The group also acquired Isotec and FloSolve, with these being successfully bedded down, he informed.

However, the energy and forklift battery businesses continued to face difficulties, resulting in an impairment of their goodwill in full of R104-million.

Turnover was up by 4.4% to R8.7-billion; the gross profit margin was “pretty flat” at 37.5% to R3.3-billion; the operating profit was up 8.9% to R1.1-billion, attributable earnings increased by 13.6% to R575-million, headline earnings a share by 15.7% to R23.27 and comparable earnings a share by 9.6% to R22.05.

Outlining the financial performance, group FD Clifford Amoils said the economy kept turnover under pressure.

He pointed out that expenses were tightly managed, with the group achieving strong cash generation.

Moreover, Hudaco still had considerable capacity for acquisitions. Capital was likely to be allocated to this, paying dividends, investing in working capital if the economy improved, repaying debt and repurchasing debts, Amoils averred.