Afrimat posts interim gross profit of R1 billion
Revenue for the period rose by 29.9% to R5.3 billion (R4.1 billion) with gross profit ending 33.4% higher at R1.0 billion (R780.5 million). Operating profit increased by 29.8% to R379.8 million (R292.6 million) with profit attributable to owners of the parent leaping to R156.3 million (R88.3 million). Additionally, headline earnings per share jumped by 92.3% to 101.9c per share (53c per share).
Dividend declaration
Notice was hereby given that an interim gross dividend, No. 37 of 20,0 cents per share, in respect of the six months ended 31 August 2025, was declared.
Company prospects
The performance of the cement plant is expected to improve as reliability and throughput increase following a detailed strategic review of kiln performance. Demand for low-carbon, high-quality cement remains strong in both bagged and bulk formats.
The assets acquired in the Lafarge transaction are either profitable or demonstrating strong momentum. The fly-ash operations are highly profitable and Afrimat’s cement extender strategy is gaining momentum. The grinding plant is profitable and the cement blending and packaging plants will be capable of supporting current and future volumes.
Post the interim period, the acquired Lafarge quarries are further increasing sales by regaining market share and developing new markets supported by a strong national presence. Afrimat is well-positioned to benefit from road and rail maintenance, private building projects, provincial maintenance, infrastructure projects, and large-scale infrastructure and building initiatives across our borders.
Afrimat expects domestic iron ore sales to be slightly lower in the second half of the financial year due to the closure of AMSA’s Newcastle operation.
International iron ore sales are projected to remain at similar levels to the previous year. The recent rise in iron ore prices is a positive development.
Unfortunately, due to the possibility of ferrochrome smelter closures in South Africa, management is currently evaluating viable options for the Nkomati Anthracite Mine. What is encouraging is that the sector and the Government are in discussions to secure sustainable electricity tariffs, thus maintaining competitiveness. Afrimat remains hopeful that no further erosion of industrialisation will occur in South Africa.
Despite the structural economic challenges in South Africa, Afrimat’s management is confident that the foundation and diversification of the Group are sound. The Group will continue to support its customers while also exploring alternative markets. The effort spent to ensure future performance is resilient, with continued investment in operational reliability supporting a positive outlook for improved returns.
