Ongoing labour strike dent Winhold Limited results - CNBC Africa

Ongoing labour strike dent Winhold Limited results


by admin 0

Winhold Limited also manufactures polyethylene terephthalate (PET) productsPHOTO: Getty Images

External revenue from continuing operations decreased to 524.7 million rand for the six months ended 31 March 2014 from 441.7 million rand in the previous comparative year.

Operating profit however increased from 10.5 million rand for the period from 9.5 million rand in 2013.

[DATA WNH:Winhold Limited] is a holding company with its main investments being 74.9 per cent investments in Gundle and Inmins.

Gundle, which comprises two plastics manufacturing and distribution operations in Gauteng and one in Swaziland, manufactures a wide range of polyethylene and polypropylene bags, construction sheeting, consumer and industrial packaging. Inmins is comprises 17 trading operations throughout South Africa servicing the mining and industrial sectors.

Profit before taxation from continuing operations decreased to 5.7 million rand from 6.2 million rand in the previous year.

Profit for the period from continuing operations decreased to 5.4 million rand for the period from 6.3 million rand in 2013. Total comprehensive income for the period however increased to 5.4 million rand from 3.6 million rand.

Revenue for the Gundle operation increased by 31 per cent, on the back of the substantial increase in polymer prices as well as a 5.5 per cent increase in production volumes.

Gross margin percentages however reduced by 2 percentage points due to the high increase in polymer prices.

“The Inmins Industrial division showed revenue growth of 13.8 per cent and a profit before tax growth of 6.2 per cent in a difficult market. In line with the horizontal integration strategy reported on before, the interdivisional sales increased in excess of 50 per cent over the comparative period,” Winhold explained.

Platinum strikes however resulted in high revenue loss within the mining supplies division, and additionally impacted otherwise good results achieved by the industrial division.

“Under the guidance of a strengthened management team, the turnaround in Gundle Germiston is expected to continue for the rest of the year,” said Winhold.

“The Inmins industrial division should continue its good performance. The recovery of the mining supplies division will largely depend on an end to the strikes in that sector.”