Revenue up to 7.5 billion rand from 6.5 billion rand in 2012, gross profit was also up significantly from 430.6 million rand in comparative year to 645.3 million rand. Normalised earnings were also up 251 per cent to 201 million from 57 million rand in 2012.
Basic headline earnings per share increased by 128 per cent to 57 cents per share from 25 cents in the comparative year.
“We have made further progress in the year under review to position [DATA HLM:Hulamin.] appropriately for growth and improved profitability,” the group said in a statement.
“Continuing cost savings with a 10 per cent reduction in employee numbers and efficiency gains from our manufacturing excellence program and other initiatives netted 96 million rand in 2013 and over 200 million rand since inception in 2010.”
Hulamin is a South African manufacturing business specialising in the manufacture and marketing of high quality rolled and extruded aluminium products.
Turnover for the year under review increased to 7.56 billion rand from 6.54 billion rand in 2012. This was supported by an improved performance from Hulamin Extrusions, and the depreciation of the rand by 17.5 per cent on average to the US dollar.
Borrowings decreased to 612 million rand from 742 million rand in 2012 indicating a positive cash flow before the group’s financing activities of 135 million rand.
The underlying operating profit before metal price lag and impairments increased by 101 per cent to 375 million rand from 187 million rand in 2012. This has been its highest since 2008.
The LME aluminium price however continued to weaken during the year, leading to a 58 million rand metal price lag loss.
“Demand in Western Europe and United States gradually improved through the year. Chinese exports of can end stock, plate and foil continued to grow due to a major expansion of rolling capacity in China in recent years which exceeded the growth in their domestic demand,” the group explained.
Local demand on the other hand has reportedly showed moderate improvement, led by growth in the beverage can market and a return to normal demand patterns in the automotive industry. The three-week automotive industry strike in August 2013 however did have a significant impact on this particular market.
Developments in South Africa’s aluminium beverage can market are expected to provide more improved recovery through recycling.
“The recycling of used beverage cans will contribute to job and wealth creation in scrap collection and distribution, and will have environmental benefits from reduced littering and an improved national carbon footprint,” the group explained.
“Given Hulamin's current export position, financial performance will continue to be influenced by the value of the Rand in exchange with foreign currencies.”