KAP flags lower annual earnings ahead amid challenging trading conditions

KAP, the group with industrial, chemical and logistics divisions, on Tuesday warned that it expects lower earnings for 2025 amid challenging trading conditions.

- PHILIPPA LARKIN

Earnings per share (eps) is expected to decrease by more than 30% for 2025, which is a decrease of at least 13.1 cents per share from 43.8 cents the prior comparative period. Headline earnings per share (heps) is expected to decrease by more than 30% for 2025, which is a decrease of at least 13.6 cents per share, when compared to the heps of 45.3 cents for the year ended June 30, 2024.

In an update guidance on the company's operational performance for 11 months of the 2025 financial year up to May 31, 2025, compared with the prior comparative period, KAP said trading conditions have remained challenging, with sentiment further dampened by the uncertainty created by the delay in the approval of the national budget, the resultant instability of the Government of National Unity and the potential negative effects of the US's tariff war. Additionally, April was a particularly weak month due to the limited trading days.

In this context, the group delivered a modest growth in revenue, a reduction in Ebitda, a decline in operating profit and meaningfully lower earnings during the period.