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.