The impact of load shedding on the share prices of South African companies is a fundamental question for investors as it is here to stay in South Africa for at least another two years.
- Companies across various industries are being negatively impacted by load shedding, including Pick n Pay, ArcelorMittal, Vodacom, MTN, Tiger Brands, and Astral Foods.
- Pick n Pay has confirmed it will report a headline loss for the first six months of the year, with nearly half of its abnormal costs being a direct result of load shedding.
- ArcelorMittal South Africa has warned of a loss of as much as R515 million for the first half of the year due to load shedding, high inflation and interest rates, and negative growth in key steel consuming sectors.
- The knock-on effect of load shedding on consumer demand is fueling inflation and crushing sales growth, particularly in the consumer-facing sectors.
- Companies are spending significant amounts of money on diesel for generators during load shedding periods.
- Investors should brace themselves as once bulletproof, efficient companies continue to surprise the market negatively.