Photo by: Duane Daws
JSE-listed African Oxygen (Afrox) on Thursday reported a 4.5% decline in profit for the six months ended June 30, to R169-million, while headline earnings a share were down 10.2% year-on-year to 49.5c.
Afrox stated that its results for the first half of 2014 were influenced by a challenging trading environment, which reflected the continued decline in the manufacturing, mining, and steel sectors in South Africa, exacerbated by the five-month strike in the platinum sector and spill-over effects of the strike by Afrox’s employees in the first quarter.
The company noted that, despite achieving price increases broadly in line with increased input costs, revenue for the six months was flat at R2.87-billion, compared with R2.86-million in the prior corresponding period.
Earnings before interest, tax, depreciation and amortisation (Ebitda) were down 2% at R442-million, with an Ebitda margin of 15.4%, down from 15.7% previously, reflecting the consequence of adverse sales conditions and inflationary pressure on costs.
During the six-month period, Afrox continued to implement its capital revitalisation and growth plan with capital expenditure of R209-million having been spent.
Afrox declared a gross interim cash dividend of 24c a share.