The group reported a 26 per cent growth in revenue to 801.7 million rand from 636.2 million rand in the previous comparative year, and gross profit margins improved from 20 per cent to 21 per cent.
“During 2013, the Group focused on organic growth in all our divisions with increased revenue through actively pursuing and entering new markets, especially in Africa,” the group said in a statement.
The [DATA RLF:Rolfes] group manufactures, buys-in and distributes a range of high-quality chemical products in industries including the plastics, water filtration, automotive, engineering, agricultural and construction industries.
Operating profit for the group increased from 68.5 million rand in 2012 to 98.9 million rand. Included in operating profit was 15.7 million rand in profit on the disposal of their Jet Park property. The proceeds then contributed 25 million rand towards the funding of the group’s Professional Water Management (PWC) acquisition.
Export revenue increased from 70 million rand in the previous year to 128.6 million rand, as a result of greater market penetration in the USA and in Europe. Strong growth in Africa also added to the significant increase in export revenue.
The group’s exports for the year ended 30 June 2013 comprised 16 per cent of turnover, compared to 11 per cent in the same period last year.
“The rand weakened significantly to the USD during the last six months of the financial year. This affected the Group positively in exports but negatively where raw material input pricing is concerned,” the group explained.
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 41 per cent to 107 million rand for the year ended 30 June 2013 from 75.9 million rand for the same period in 2012.
A final dividend of 5 cents was declared.
Revenue for the group’s industrial chemicals division increased by 7.4 per cent to 502.9 million rand from 468.3 million rand in the previous year.
The limited growth in this division was attributed to a strong increase in export activities into Africa and Europe being offset by disappointing local results due to a weak manufacturing environment.
Revenue for its agricultural chemicals division was recorded at 234.8 million rand, with growth in the division due to solid local market performance and increased export sales into North America and Africa.
Rolfes’ mining and water chemicals division revenue increased by 37.7 per cent to 62.2 million rand from 45.2 million rand in the previous comparative year.
“New and extended product development in all the divisions presents exciting growth prospects and we look forward to extending our market share in the USA, Africa and Western and Eastern Europe with current or new long-term partners,” the group said.
“Management will constantly review operations to identify restructuring opportunities ensuring the rightsizing of our cost base.”