Beige Holdings reports tightened trading conditions - CNBC Africa

Beige Holdings reports tightened trading conditions

Earnings

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Beige Holdings is a home care, personal care and pharmaceutical industries products manufacturer. PHOTO: Getty Images

The home care, personal care and pharmaceutical industries products developer and manufacturer saw revenue decrease from 329 million rand for the six months ended 31 December 2012 to 273 million rand for the same period in 2013.

“The period under review has been extremely challenging characterised by continued economic uncertainty, which has had an impact on both the multi-nationals and local retailers for which Beige manufactures its products,” [DATA BEG:Beige Holdings Limited] said.

“The tightening of the trading conditions resulted in subdued volumes for the six month period under review as key customers in-sourced product and changes in the product mix were often to lower margin products.”

The South African company reported an operating loss of 18 million rand in the 2013 period from a loss of 13 million rand in 2012 and a loss before income tax of 25 million rand from a loss of 19 million rand in 2012.

It also reported a headline loss for the period attributable to equity holders of 18 million rand in 2013 from a loss of 13 million rand in 2012 and a diluted headline loss per share of 1.19 cents from a loss of 0.87 cents.

“Whilst the economic conditions have not eased, the group's revenues and order book for the remaining period of the financial year is robust and healthy in the outsource manufacturing segment. Volumes are expected to increase materially compared to the first half of the financial year from both existing customers and new business,” the company said.

“The packaging segment volumes are expected to remain flat for the rest of this financial year. However, the cost reductions in packaging will serve to reduce the losses substantially. The group has already returned to profitability in the first two months of the 2014 calendar year. It is expected that the cost reductions and healthy order book will continue to enhance the prospects of the group.”

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