Hulamin’s earnings slump spurs exit from noncore businesses
JSE-listed Hulamin’s financial results for the six months ended 30 June have revealed that the company’s earnings are under significant pressure, resulting in decisive portfolio restructuring to streamline operations around core products.
The aluminium producer reported on August 25 a near halving of its normalised headline earnings per share (HEPS) to 26c, compared with 50c in the same period last year.
This means that while sales volumes edged higher, the company made far less money from each unit sold, as rising energy costs, a stronger rand and tougher competition squeezed profitability.
Overall, Hulamin swung from a profit to a loss, reporting a basic loss of 8c a share, compared with an 83c profit previously.
Operating profit also dropped sharply, falling 64% year-on-year to R165-million. No dividend was declared for the period.
Despite these pressures, Hulamin highlighted progress in reshaping its business to focus on its most competitive segments. A major milestone was reached with the completion of the wide canbody expansion project, designed to boost local production and reduce reliance on imports.
The next step is to prepare these new products for full commercial rollout in early 2026.
Simultaneously, the company has taken tough decisions on underperforming parts of the business. Operations at Hulamin Containers were shut down in June and the group has begun winding down and selling off its assets.
It also announced plans to exit its Extrusions division, with disposal negotiations already under way and expected to be completed by year-end.
Management said the priority now is to cut costs, reduce debt and drive higher sales in the second half of the year. By narrowing its focus to its core rolled products, Hulamin believes it can deliver a stronger and more sustainable performance in future.
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