JSE-listed building materials group Iliad Africa on Tuesday reported a drop in headline earnings, from 20c a share during the first half of 2012, to 0.4c a share for the six months ended June 30, 2013.
Earnings a share moved into the red, recording a loss of 39c during the six months under review, compared with the earnings a share of 20.1c achieved in the corresponding prior half-year.
Iliad pointed out that the results for the six months to June included the R70.2-million fair value adjustment on available-for-sale assets relating to the disposals of the Timber Wholesale and Ceramics businesses; a R6-million loss on disposal of Ceramics Cash & Carry business components; and the restructuring cost of R14.7-million in respect of the rationalisation of two underperforming stores.
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell from R66.5-million in the six-month period ended June 2012, to R50.8-million in the period under review. Excluding adjustments, Ebitda reached R77.7-million for the 2013 half-year, down from R80.6 million during the corresponding period in 2012.
Revenue remained flat at R2-billion on the back of a subdued trading environment, marginal building plan recovery and the slowdown in the finishing end of the industry.
“The building materials supply industry remains competitive and although it has been challenging to operate in the industry over the past few years, the company’s ongoing focus on procurement and improving cost structures has countered these conditions to some extent,” said Iliad CEO Eugene Beneke.