“The thing to look at in this set of results normally is the operating profit. We actually had the best level of profitability since 2006 for the first half so we’re very pleased about this set of results,” Richard Jacob, Hulamin Chief Executive Officer (CEO) told CNBC Africa on Monday.
Turnover increased by 13 per cent to 3.6 billion rand even though the company earnings plunged significantly. Jacob said this was a temporary setback, showing some optimism over improved sales volumes and better income in the second half.
“Obviously it’s a long slogan, the turnaround continues. This is not the destination – this is just an interim place that we’re in. Certainly we were quite pleased about the first half of this year,” said Jacob.
“We’re certainly on a journey now. There are a number of issues we’ve still got to get right in the business but the prospects are looking better.”
Jacob announced that [DATA HLM:Hulamin] clinched a deal with Nampak, a company manufacturing and producing cans for soft drinks, to supply them with aluminium.
“In fact the market to date has been in tin plates and steel cans so Nampak are in the process of converting the market from tin plate to aluminium cans. As that convergent takes place we will be growing our supply to them,” he said.
“In developing the beverage can market it really does underpin a turnaround in terms of the balance of our sales be it export or local. We probably are going to be at least 50/50 from 75/25 local export within the next two to three years.”
On Monday Hulamin’s shares were up five per cent at 4.60 rand.