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Hudaco posts lower H1 earnings

1st July 2016

By: Creamer Media Reporter

  

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JSE-listed Hudaco Industries on Friday posted a dip in half-year earnings as it battled an “exceedingly difficult” economic environment.

The group’s basic and headline earnings a share decreased by 13.9% to 472c for the six months ended May 31.

Comparable earnings a share fell 19.7% to 440c during the first half of the year.

The comparable earnings for the six months to May 31 would have been down only 3% had it not been for a R50-million profit boost in the comparable period last year, owing to higher sales of alternative energy products as a result of load-shedding and a large contract for communication equipment.

Turnover for the period under review decreased 1.6% to R2.5-billion, while operating profit declined 15.8% to R246-million and operating margin was maintained at 9.8%.

Net cash generated from operating activities reached R172-million.

Operating expenses were well controlled, increasing 4% despite acquisitions made during the period.

Hudaco reduced its interim dividend by 5.6% to 170c a share.

Edited by Creamer Media Reporter

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