Hulamin reports drop in revenue for the half year ended 30 June 2019

Hulamin announced unaudited results for the half year ended 30 June 2019. The company reported an operating loss of R77.7 million in the six months compared to an operating profit of R158.5 million last year. This records a plunge of 149% year-on-year.

Richard Jacob, Hulamin Chief Executive Officer said: ‘Hulamin experienced challenging trading conditions during the first six months of 2019. Export sales to the United States were disrupted by blockages in our distribution channel, customer overstocking, and a softening underlying market.”

“This disturbed the balance between material purchases and sales resulting in an increase in work-in-progress and finished goods stocks, and the consequent absorption of cash.”

Hulamin’s extrusions division suffered a first-half loss, because of provision for restructuring costs. Sales volumes were lower following an equipment malfunction and the consequent disruption to production.

Revenue stood at R5.25 billion for the half year ended 30 June 2019, down by 1% from R5.29 billion last year.

“We are making good progress in rightsizing the business to achieve a lower unit cost base; turning the losses around and releasing cash.We are taking action to improve profitability levels in the months ahead through cost reductions and actions to achieve higher sales volumes and prices,” added Richard Jacob.