Rolfes anticipates positive performance in 2014 - CNBC Africa

Rolfes anticipates positive performance in 2014

Earnings

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Worker coating mould in a metal foundry. PHOTO: Getty Images

The company saw revenue increased by 26.2 per cent to 517.6 million rand from 410.2 million rand in the previous comparative period in 2012.

Turnover also increased by 26.2 per cent to 517.6 million rand, and export turnover took a similar path, increasing by 35.1 per cent to 87 million rand.

“Gross profit increased to 110.5 million rand from 86.6 million rand in 2012, with gross profit margins increasing to 21.4 per cent from 21.1 per cent in the previous year,” the company said in a statement.

[DATA RLF:Rolfes] is a manufacturer and distributor of a wide range of chemical products to industries including the coatings, plastics, ink, metallurgical, water filtration, water management and construction.

Headline earnings per share however declined by 5.7 per cent to 19.9 cents from 21.1 cents in 2012, and earnings per share also decreased by 19 per cent to 17.1 cents from 21.1 cents in 2012.

Cash generated by operations improved by 17 million rand over comparative period, and cost of sales increased to 407 million rand from 323.5 million rand in 2012.

Operating expenses however increased to 71.6 million rand from 45.5 million rand in the previous comparative year. Operating profit declined to 41.7 million rand from 43.5 million rand in 2012.

“Operating costs increased due to inclusion of the PWM companies for the full six months, set up costs of the leather chemicals business, and expansion into Africa,” the group explained.

Turnover for the company’s industrial chemicals division increased by 3.6 per cent to 259.1 million rand, compared to 250.2 million rand in 2012.

The company’s turnover of agricultural chemicals increase by 14.8 per cent to 155.3 million rand, compared to 135.3 million rand in 2012. The division’s results were reportedly negatively influenced by the agri-chemicals season being extended by approximately six weeks due to late and interrupted rain patterns in certain areas.

“Focus for the next six months remains on new product development and increasing exports to North America, Africa and Eastern Europe,” the group said. 

“The construction of a pilot plant for the production of Organic Plant Growth Promoting Rhizobacteria (PGPR), is still in its planning phase and is expected to be completed and in production during 2015.”

Rolfes is also in the process of acquiring 100 per cent equity in Agchem Properties Limited, which owns the Waltloo land and buildings and adjacent vacant land in Pretoria, for approximately for 17 million rand.

Turnover for the mining and water chemicals increased by 183.7 per cent to 66.6 million rand, compared to 23.5 million rand in 2012.

“The group continues to pursue the large projects mentioned above. To implement these projects in full, will require capital estimated to be in excess of R110 million (excluding the acquisition of Agchem Properties which will be funded by long term debt)," said the group.

"These projects will be funded by way of a combination of long term debt and share capital."

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