On 14th April 2021, the South Africa based specialized aluminium rolled product, HULAMIN stated that the Covid-19 pandemic has triggered a major turmoil in its operations as sales volume downfallen by 24% to 166,000 tonnes in the year to end December’20.
The group commented: “ The London Metals Exchange price of aluminium, which mainly affects working capital and metal price lag, was stronger during the period, climbing to $2 018 a tonne, up from $1 770 a tonne a year earlier and the rand price of aluminium rose by 18% by the end of 2020.”
However, the group’s turnover dropped by 20% to R8.55 billion, while its headline loss progressed to R210 million compared to R240m reported last year.
Richard Jacob, CEO, said: “The group faced strong headwinds during 2020 as local and export sales were impacted by Covid-19-related slowdowns across the local and global economies.”
“Lockdown in South Africa and across the globe impacted sales of all products and resulted in the inability to operate until Hulamin Rolled Products was issued an ‘essential services’ certificate in mid-April. The lockdown driven ban on alcohol sales in the local market further impaired sales of beverage can material in our largest market, South Africa,” Jacob said.
Hulamin controlled to minimize its losses despite a difficult year, with headline loss improving by 10.5% to 68 cents a share compared to 76c and basic loss a share improved by 80.3% to 75c compared to last year’s loss of 380c.
The group also saw a refinement in its operations during the second half of the financial following the partial withdrawal of lockdown restrictions as all operations returned to operating profitability in the final quarter as volumes improved.
Jacob added: “Another positive aspect during the year was that Hulamin Extrusions completed its turnaround plans following the closure of its Olifantsfontein site, which has subsequently been sold, the business has consolidated operations successfully in Pietermaritzburg and returned to profitability in the second half.”
“Both Hulamin Rolled Products and Hulamin Extrusions are therefore focused on returning to full manufacturing volumes, although Hulamin Rolled Products will undertake a comprehensive maintenance shutdown during the first half of 2021,” he concluded.
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