Imperial out with record H1 revenue

Imperial Holdings, a leader in logistics and the motor industry, recently announced an 11 percent increase in revenue to R66.5 billion in its interim results for the period. The company's headline earnings per share also surged by 16 percent to 717 cents per share, with operating profit rising by five percent to R3.1 billion. The CEO of Imperial Holdings, Mark Lamberti, joined CNBC Africa to discuss the impressive performance in the first half of the year and shed light on the factors driving the growth. Lamberti acknowledged that acquisitions played a significant role in boosting the company's profits, while growth in existing businesses remained subdued. He explained that Imperial Holdings had been undergoing a substantial transformation for over three years, with the disposal of 44 businesses and the acquisition of 15 new ones. The restructuring aimed to streamline the company's operations, focusing on two core businesses - logistics and motor vehicles. The separation led to improved results on the expense line and enhanced margins, signaling a positive direction for the company's future. Despite recent changes in the South African political climate, Lamberti emphasized that Imperial's international growth strategy was not driven by external factors but by the need for expansion beyond saturated domestic markets. As the market leader in logistics and the motor industry in South Africa, the company sought growth opportunities abroad to avoid regulatory constraints at home. Lamberti expressed confidence in the continued international growth of Imperial Holdings over time. Addressing the performance of the car market, Lamberti highlighted the resilient nature of the industry in South Africa. While overall market growth was modest at 5%, Imperial Holdings outpaced the national figures, gaining market share particularly in the lower-end segment. The company's exclusive import rights for brands like Hyundai, Kia, and Renault positioned it favorably in the market, where consumer demand for affordable vehicles remained strong. Lamberti also noted a positive outlook for 2018, buoyed by a favorable economic environment. Looking ahead to the upcoming budget announcement, Lamberti anticipated a tough yet necessary budget that focused on fiscal consolidation. He underscored the importance of revenue generation and fiscal responsibility for the country's long-term stability. Despite the potential challenges posed by the budget, Lamberti pointed out the positive impact of improved sentiment on investment and consumer behavior. When questioned about his role as a board member at Eskom, Lamberti refrained from commenting on the state-owned enterprise, stating that it was not within his purview to discuss the organization's outlook. However, he expressed confidence in the board's capabilities and their commitment to addressing the challenges facing Eskom. In conclusion, Imperial Holdings' robust financial performance in the first half of the year reflects the company's strategic realignment and focus on core business areas. With a continued emphasis on international growth and operational efficiency, Imperial Holdings is poised to capitalize on market opportunities and deliver sustainable value to its stakeholders.