AECI reports improved performance in spite of challenges in the local market

AECI's international industrial and chemicals operations reported an improved performance for the five months to May 31, while its South African-based business was impacted by weak power challenges and supplier headwinds.

- EDWARD WEST

The group, which provides mining solutions, water treatment, agricultural health, and specialty chemicals products, said in an update on Monday that revenue was slightly lower than the same time last year. Conversely, earnings before interest, tax, depreciation, and amortisation (EBITDA) and profit from operations were higher.

There was a cut in strategy implementation costs in AECI Property and Corporate Services, and continued conversion of the EBITDA run rate relating to the Transformation Management Office (TMO) initiatives into profit and loss, albeit lower than expected.

This was partially offset by the impact of the South African-based operations, in both AECI Mining and AECI Chemicals, which were facing challenges. Group profit from operations for the period increased 17% to R800 million. Net finance costs improved by 40% due to lower debt, mainly resulting from the proceeds received for the R1.1 billion Much Asphalt divestment concluded in the first quarter of 2025.