Hulamin delivers improved financial results for the half-year ended 30 June 2017

Aluminium extruded product manufacturer Hulamin reported unaudited interim results for the six months to end June 2017, with headline earnings per share up 17% to 56 cents per share and operating profit up 11% despite stronger local currency.

Richard Jacob, Hulamin's Chief Executive Officer, commented: "Hulamin has delivered a strong manufacturing performance and improved financial results, despite difficult market conditions and the Rand being 14% stronger compared to the corresponding period in 2016. Sales volumes increased by 8% and we achieved improved overall and per unit cost performance.”

Hulamin’s rolled products volumes were up 8% to 221,000 tonnes annualised, as unit costs down 8%. The company increased its domestic beverage can packaging volumes by 133% despite a fall in overall manufacturing.

“Although export markets remain over-traded, Hulamin benefited from actions to enhance the product mix, improved market positioning and concerns among customers in the US that imports from China are likely to be controlled or curtailed. In the US, Hulamin's Heat Treated Plate continues to set quality and performance benchmarks,” it said.

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The turnover increased by 3% to R5.1 billion driven by the higher sales volume and an average US dollar aluminium price that was 22% higher than the comparative period.

Earnings before interest and taxation (EBIT) increased by 11% to R286 million while net interest charges decreased by 18% to R39 million, driven by lower levels of debt. Attributable earnings amounted to R178 million for the six months under review, an increase of 17% compared to the prior period.

Hulamin Extrusions performed consistently despite further weakening of domestic market conditions.