Mustek on the path of recovery - CNBC Africa

Mustek on the path of recovery

Earnings

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Acer devices. PHOTO: Acer

Their gross profit percentage from continuing operations increased from 13.2 percent to 14.1 percent while revenue rose 9.5 percent to 1.978 billion rand, after the group went through a declining trend in recent years.

Headline earnings also rose 32.8 percent at 42.15 cents per share and basic earnings is 31.1 percent higher at 41.30 cents per share.

Their performance is attributed to the growth in Acer, Lenovo and Asus electronic product ranges.

“The Group is also starting to see some success in its Huawei Enterprise Solutions, Security and Green Energy products and expects growing contributions to both revenue and profit going forward,” [DATA MST:MUSTEK LTD.] said. 

The group however incurred a loss of ten percent on the sale of its investment in Nigeria’s Zinox Technologies, equating to 0.7 million rand.

“The contribution from our associates decreased slightly after an unexpected once-off write-off in excess of three million rand in one of the associated companies,” said the company.

While there is an ongoing debate around the future of the desktop within the industry, the Mustek group believes that the desktop will simply continue to evolve based on market trends and customer requirements.

For some time, sceptics have argued that the PC will be replaced with newer devices such as the tablet. Mustek was initially excluded from this growth opportunity, but as some of the brands distributed by the Group started catching up, Mustek is becoming a key player in the local tablet market. Over the next few years, this is likely to be a positive revenue driver,” added the company.

An expansion strategy may also be on the cards for the group as they consider growth opportunities in the education, health, security and solar energy space.

“We are also continuing with our research and development into new product offerings that has both potential markets and growth into the foreseeable future,” they said.

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