Pietermaritzburg-based aluminium manufacturer Hulamin has reported a decline in its full-year earnings, citing operational challenges and a fire at its can-end finishing line as key factors. The company’s attributable profit dropped to R246 million from R272 million previously. Normalised headline earnings per share (HEPS) fell by 45% to 42 cents, while basic HEPS declined 28% to 64 cents. Hulamin’s revenue dipped slightly by 1% to R13.6 billion, and its normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 12% to R544 million. The company did not declare a dividend.
The year started positively for Hulamin, with improved market conditions, especially in export segments. However, ongoing pricing pressures in areas such as export can stock impacted earnings. Locally, demand remained steady, particularly for Can Body products. The fire at the can-end finishing line disrupted operations, forcing the company to shift its focus toward lower-margin products. This shift resulted in a weaker sales mix in the latter half of the year, despite the finishing line being repaired within three months. The group managed to secure R48.7 million in insurance proceeds from asset replacement after the fire.
Despite these setbacks, Hulamin maintained focus on its five-year strategy, successfully completing the first two phases of its wide can body investment. The company plans to commence commercial wide can body production by the end of the fourth quarter of 2025 while continuing to expand in core market segments. Hulamin also reaffirmed its commitment to reducing working capital net debt as part of its ongoing financial strategy. Although operational issues constrained growth, rolled product volumes still increased by 2% year-on-year, reaching 173,167 tonnes.