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JSE-listed Imperial on Tuesday posted lower earnings for the first half of the 2015 financial year, on the back of a delayed impact of a weakening rand.
The group’s headline earnings per share declined 9% to 759c, while earnings per share (EPS) fell 18% to 738c during the six months to December.
Core EPS declined 14% to 803c.
Imperial attributed its reported 9% decrease in operating profit to R2.87-billion to depressed margins caused by the delayed impact of a weakening rand on the competitiveness and profitability of the vehicle import, distribution and dealership division.
“The profitability of the logistics international division was depressed by low and declining activity levels in most Eurozone logistics sectors and the financial services division's results were depressed by weaker equity markets in our insurance business,” the company commented.
However, an “excellent” performance by Logistics Africa and a “pleasing” performance by the vehicle retail, rental and aftermarket parts division partially offset the declines.
Revenue during the interim period under review was up 9% to R56.2-billion, mostly owing to acquisitions.
Cash flow from operating activities was up 73% to R1-billion.
Imperial declared an interim dividend of 350c a share.