Spar has announced the successful resolution of its SAP system issues at its KwaZulu-Natal distribution center, a major step in its operational recovery. The system failures, which began in February 2023, caused significant supply chain problems and an estimated R2 billion in lost sales. Now, Spar reports improved pricing visibility and is preparing for the next phase of its SAP rollout. This resolution is crucial for Spar as it focuses on strengthening its balance sheet. Margin recovery is being supported by improvements at the distribution center, the sale of underperforming stores, and increased operational efficiency. Spar is also actively managing…
Author: Staff Writer
Implats has reported a significant profit slump, prompting the company to forgo its interim dividend. The PGM miner cited ongoing pressure from low platinum group metals (PGM) prices and a weak global economic outlook as key factors impacting its financial performance. Revenue fell by 3% to R42.3 billion, reflecting the challenges faced by the sector. The company is considering further production cuts to adapt to the market downturn, despite some positive signs, such as slowing destocking by automotive and industrial users. However, a lack of confidence in demand and continued low dollar pricing are straining South African producer economics. Headline…
Truworths International has reported a decline in profits, citing subdued consumer spending in South Africa amidst global economic uncertainties. Despite a 2.4% increase in overall retail sales, reaching R12.5 billion, the group’s headline earnings per share fell by 4.6% to 489.2 cents. Trading profit also decreased by 8.3% to R2 billion, primarily due to foreign exchange losses and increased operational costs. Truworths Africa saw a 4.6% rise in retail sales, with online sales growing by 38%, now contributing 5.8% of the division’s total sales. However, the retailer anticipates that discretionary spending in South Africa will remain weak in the coming…
SARS Commissioner Edward Kieswetter has told G20 finance ministers that increasing tax revenue should prioritize enhancing collection capacity rather than raising tax rates. This stance aligns with his previous concerns about the proposed VAT hike in South Africa’s budget, which was ultimately delayed. Kieswetter emphasized that raising taxes has consequences, potentially stifling economic growth and reducing the tax base. He argued that higher taxes require increased compliance efforts, which are challenging with existing inefficiencies. Furthermore, he stressed that public trust is essential for compliance, and this trust is undermined when taxes are perceived as inequitable or poorly spent. Global leaders…
Momentum’s shares experienced a significant rally, climbing 13%, after the insurance and investment group released a trading update forecasting a substantial profit surge. The company anticipates earnings and headline earnings per share to increase by 50% to 55%, reaching between 240 cents and 248 cents for the six months ending December. Normalized headline earnings are also projected to rise by 43% to 48%. This strong earnings guidance boosted Momentum’s market capitalization to approximately R43 billion. The company attributed its strong performance to robust operational results across all business units, improved policy persistency in South African life insurance, and disciplined underwriting…
Bidcorp has announced a 10% increase in first-half profits, projecting a positive outlook for the rest of the fiscal year. Headline earnings per share (HEPS) reached 1,267 cents in the six months ending December. CEO Bernard Berson attributed this growth to a combination of organic expansion and strategic acquisitions, noting approximately 5% real organic growth after adjusting for inflation and acquisitions. The company completed eight bolt-on acquisitions during this period. Despite operating in a challenging global environment, marked by currency fluctuations, subdued demand in China, and weather-related issues in Europe, Bidcorp remains optimistic. The company emphasized its focus on controllable…
AB InBev has announced record revenue and significant profit growth for 2024.The company reported a 2.7% increase in total revenue for the full year, driven by a 4.3% growth in revenue per hectoliter. Normalized EBITDA rose by 8.2%, and underlying earnings per share jumped by 15% to $3.53. Despite a slight decline in total volumes, the company saw strong performance in key brands and markets. CEO Michel Doukeris attributed the strong results to the consistent execution of the company’s strategy, highlighting investments in megabrands, digital transformation, and operational efficiency. The company emphasized its focus on premiumization, innovation, and expanding its Beyond Beer…
Anglo American has confirmed its intention to retain its 40% stake in the Samancor Manganese Joint Venture in South Africa, alongside its 60% partner, South32. CEO Duncan Wanblad stated there are “no plans to do anything short term” with the manganese asset, citing its relatively good returns and strategic opportunities. The Samancor JV, which operates the Wessels and Mamatwan mines, is a key component of Anglo’s portfolio, despite the company’s broader strategy to focus on copper, iron ore, and its Woodsmith fertilizer project. Anglo has recently divested its metallurgical coal and nickel operations and is demerging Anglo American Platinum. South32, the operator…
The Democratic Republic of Congo (DRC) has offered the United States and Europe access to its vast mineral wealth in exchange for intervention to end the ongoing conflict. President Felix Tshisekedi’s spokesperson urged the US to directly purchase critical minerals from the DRC, rather than obtaining “looted” resources through Rwanda. She extended the same offer to Europe, emphasizing the DRC’s ownership of these valuable commodities. This move comes as the US imposed sanctions on a Rwandan military officer, accusing Rwanda of supporting the M23 rebel group in eastern DRC. The DRC and UN reports have accused Rwanda of exploiting the…
South African Reserve Bank (SARB) Governor Lesetja Kganyago has cautioned that global economic fragmentation threatens stability due to certain international trade policies. He highlighted the increasing uncertainty caused by trade fragmentation and economic division, particularly citing potential impacts arising from tariff threats. Speaking before a G20 finance meeting, he stated that this heightened uncertainty disrupts global trade, posing a major challenge for policymakers worldwide. The Governor expressed concerns that trade wars could destabilize inflation and even force central banks to reverse recent interest rate reductions, emphasizing the need for policy caution. He advised smaller, open economies to strengthen their resilience…