JSE-listed Blue Label is optimistic of a more than 20% increase in half-year earnings.
Basic, headline and core headline earnings per share (HEPS) for the six months ended November 30, 2019, are expected to improve by 2.52c, 3c and 2.28c, respectively.
This compared favourably with the reported losses on basic, headline and core HEPS of 12.59c, 15.02c and 11.39c achieved in the comparative period in 2018.
“For the six months ended November 30, 2018, fair value losses totalling R493-million and the group’s share of equity accounted losses in Cell C amounting to R133-million were recognised,” Blue Label said in a trading update on Thursday.
“No further fair value losses related to the special purpose vehicles (SPVs) were recognised in the current reporting period as the exposure to the SPVs has been fully accounted for as at May 31, 2019.”
As the carrying value of Blue Label’s investment in Cell C was fully impaired for the year ended May 2019, the financial results of Cell C during the current period will not have an impact on Blue Label’s earnings for the current reporting period.
“The above two factors are the primary contributors to the expected growth in earnings,” the company continued.