KAP share price surges 13% as operating profit rises

KAP's share price surged over 13% on the JSE Wednesday after it said operating profit increased because challenges it faced in the 2025 financial year had, as expected, eased.

- EDWARD WEST

In an update for the five months to November 30, 2025, KAP's directors said earnings before interest, tax, depreciation and amortisation (EBITDA) increased due to increased panel production and sales volumes, including full utilisation of the new PG Bison fibreboard line; better local vehicle assembly volumes; an improvement in underperforming businesses; and lower finance costs.

The share price traded 13.13% higher at R1.81 on the JSE Wednesday, a price however that was still well off the R3.13 it had traded at a year before.

The previous year's results were impacted by higher costs from the startup of PG Bison's fibreboard line; higher finance costs that were capitalised during construction of capital projects completed in the year to June 30, 2024, and lower vehicle production by two manufacturers.

"The group's (five month) performance should be viewed in the context of a difficult trading environment, marked by subdued consumer demand, global oversupply of certain products, sustained intense competition, and heightened uncertainty related to the United States' tariff war," KAP's directors said.