In This Article:
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Sales Volume: Increased by 2% to 173,000 tonnes.
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Local Sales: Accounted for 55% of total sales.
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Normalized EBITDA: ZAR544 million.
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Normalized EBIT: ZAR379 million, down 22% from the prior year.
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Net Debt: Closed at ZAR1.3 billion.
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Capital Expenditure: ZAR569 million, with ZAR295 million for expansion and improvement.
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Normalized Headline Earnings: ZAR142 million.
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Finance Cost: ZAR183 million.
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Net Working Capital: ZAR391 million, impacted by higher inventory holdings.
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Scrap Utilization: Increased to 22.3% of total production.
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Insurance Claim: Excluded first 14 days of lost production, with ZAR45 million not covered.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hulamin Ltd (FRA:4H6) achieved a significant safety milestone by reducing the lost time injury frequency rate to below 0.1 times for the first time in five years.
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Rolled product sales volumes increased by 2% year-on-year, despite operational challenges.
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The company successfully finalized a fire insurance claim within the reporting period, covering asset replacement and business interruption.
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Hulamin Ltd (FRA:4H6) achieved record sales volume for the can-body sheet and plate, capitalizing on incremental export demand.
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The company has made substantial progress in enhancing can body capabilities and increasing scrap utilization, with Phase 1 and 2 of the wide can body investment completed.
Negative Points
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Operational challenges, including a fire on the can and finishing line, negatively impacted financial performance in the second half of 2024.
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Normalized EBIT decreased by 22% from the prior year, affecting overall headline earnings.
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The extrusion business unit posted performance below expectations, prompting a strategic review.
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Increased debt levels and gearing were reported, with net debt closing at ZAR1.3 billion.
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Export pricing pressures in Europe impacted cold rolled standards and plate products, contributing to a weaker sales mix in the second half of the year.
Q & A Highlights
Q: How much headroom does Hulamin have on its debt facilities? A: Meganathan Gounder, CEO, stated that Hulamin's debt finished at ZAR1.3 billion, with a total facility of ZAR2 billion, providing approximately ZAR700 million in headroom.
Q: What is the current cost of capital for Hulamin? A: Meganathan Gounder, CEO, mentioned that the current Weighted Average Cost of Capital (WACC) is just short of 17%.
Q: What is the price uplift of wide can body versus narrow can body? A: Meganathan Gounder, CEO, explained that wide can body offers additional efficiencies for customers, aligning with Hulamin's customer-centric strategy to ensure profitability for both parties.