The latest addition to JSE-listed Imperial Holdings' group portfolio has further cemented the diversified industrial services and retail group’s footprint in Africa, CEO Hubert Brody said on Wednesday.

Imperial, which bought pharmaceutical and consumer healthcare supply chain services business RTT Health Sciences for R515-million in January, expected the acquisition to boost distribution growth opportunities for the group on the continent.

“Our expansion into Africa is gaining momentum and remains a core focus of the group,” he commented, adding that the group recently narrowed its focus to consumer logistics.

The new business, which was renamed Imperial Health Sciences, complemented Imperial’s acquisition of consumer goods service provider CIC in the prior year.

The already-established operations of Imperial Health Sciences in several African countries enabled the group’s continued traction into the African market and would have a positive impact on Imperial’s operations during the second half of this year.

Health Sciences had a presence in six sub-Saharan African countries –South Africa, Kenya, Nigeria, Ghana, Malawi and Swaziland – and delivered, through agents, essential medicines and consumer health products to 27 other African countries, including Namibia, Botswana, Mozambique, Zimbabwe, Zambia, Tanzania, Uganda, Ethiopia, Rwanda and Côte d’Ivoire.

“Our Rest of Africa logistics business will place its emphasis on consumer and distribution growth opportunities while also ensuring that it is a strong transport operator on certain key corridors on the continent.”

The Rest of Africa business combined all operations on the continent besides those in South Africa.

FINANCIAL SUMMARY
Imperial achieved 18% growth in revenue at R45.3-billion and a 12% rise in operating profit at R400-million during the six months to December 2012.

The Southern African logistics business recorded 4% growth in revenue to R8.6-billion but a 22% decrease in operating profit to R400-million in the period under review. The Rest of Africa operations achieved a 24% rise in revenue and an increase in operating profit of 22%.

Imperial’s international logistics unit generated revenue of €669-million – a 69% increase during the first half of the year, while operating profit rose 45% to €29-million.

The company’s car rental and tourism revenue fell 0.8% and operating profit decreased 12.9%, at R1.9-billion and 210-million respectively in the six months to December.

The automotive parts and industrial products sector saw an 11% increase in revenue and a 16% rise in operating profit.

The automotive retail unit reported 10.6% and 14.6% revenue and operating profit increases respectively, while the distributorship business increased revenue and operating profit by 17% and 13% respectively during the period under review.

Revenue in the financial services division rose 18%, with a 43% increase in operating profit.