Barloworld has reported a 1% revenue increase for the four months leading up to January 2025, driven by exceptional growth in its Mongolia operations. Revenue from Barloworld Mongolia surged by 80% due to strong product sales and aftermarket demand. The company highlighted that the challenging trading conditions in Southern Africa were offset by the expansionary environment in Mongolia, which is experiencing growth due to government infrastructure projects and mineral demand, primarily from China.
Barloworld noted that the Southern African mining sector, excluding gold and copper-driven economies, remains constrained due to lower commodity prices. Despite this, the company expressed confidence in its financial position, citing sufficient headroom, gearing, and liquidity. Moody’s recently upgraded Barloworld’s credit rating, anticipating that the company will maintain healthy credit metrics despite the commodity cycle downturn and the proposed acquisition and delisting. Caterpillar, a key supplier, has also publicly supported the R23 billion takeover bid led by Barloworld’s CEO.
Barloworld acknowledged that challenging mining activity impacted its bottom line. While machine sales revenue remained stable and rental revenue increased, after-sales activity in parts and services declined. Overall revenue in this area decreased by 4.7%, however, cost control measures led to improved operating profit margins. The company’s joint venture in the Democratic Republic of Congo, Bartrac, delivered a positive share of profit, although lower than the previous period.