AECI's interim headline earnings surge but second-half outlook is more cautious

AECIs strong 132% increase in headline earnings a share to 604 cents in the six months to June 30 is unlikely to be repeated in the second half due to slightly slower progress on a strategy to optimise the global mining, chemicals, and agri-health business.

- EDWARD WEST

Revenue from continuing operations fell 2% to R15.69 billion, while earnings before interest, tax, depreciation, and amortisation (EBITDA) from continuing operations increased by 24% to R1.58bn.

A 100 cent a share dividend was declared - no dividend was paid out at the same time last year.

“Despite some setbacks in strategy execution, particularly under the value unlock pillar, our strategy remains intact, with clear progress against key milestones in the period. Going into the second half, I look forward to continuing our international growth while navigating the structural and supplier challenges impacting our business in South Africa, as well as addressing delays in our strategy execution program," CEO Holger Riemensperger said.

He said the group expected to report another positive performance in the second half of 2025, supported by a solid performance from its core businesses.

However, the results were expected “to be behind aspirations as a result of delays in the EBITDA run rate”

During the interim period, profit from operations was down 6% to R699m. Net debt of R2.92bn was well down from RS.1bn at the same time last year. Gearing of 25% (June 30, 2024: 41%) was also well within the guided range of 20% - 40%.