Companies in the news!
### **Momentum Group Posts 5% Growth in New Business Sales, Expands Across Africa**
Momentum Group Limited (MTM) reported a solid 5% increase in its Present Value of New Business Sales (PVNBP), which rose to R20.7 billion for the three months ended September 2024. This performance was largely driven by a 25% jump in sales across Africa. Despite facing economic pressures, Momentum Retail saw an 11% rise in protection new business, while Momentum Investments expanded by 16%, contributing an additional R158 million in Value of New Business (VNB). However, lower sales volumes in Momentum Corporate and regulatory solvency positions remained stable. The company continues to focus on managing expenses amid a challenging retail environment.
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### **Old Mutual Sees 6% Increase in Life Sales, Announces Special Dividend**
Old Mutual Limited (OMU) reported strong performance for the first nine months of FY09/24, with Life APE sales rising by 6% to R10.41 billion. The company saw a 19% increase in gross flows, reaching R9.85 billion, and a 19% improvement in net client cash flow. Old Mutual’s regulatory solvency ratio stood at 198%, well within target. The company also declared a special dividend of R2 billion and a R1 billion share buyback. While the implementation of the two-pot retirement regime may result in higher claims volumes, Old Mutual remains focused on driving sustainable growth.
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### **Coronation Fund Managers Achieves 245% Growth in Earnings per Share**
Coronation Fund Managers (CML) reported a substantial 245% increase in earnings per share (EPS), reaching 630.5 cents for FY09/24, driven by increased revenue and strong performance in fund management. The company’s revenue grew by 7%, reaching R3.91 billion, while earnings from fund management saw a remarkable 273% jump. Coronation’s solid performance was boosted by a favorable market environment and recovery in the financial sector.
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### **Ninety One’s Profits Decline Despite Growth in Assets Under Management**
Ninety One plc (N91) reported a 12% decline in both headline earnings per share (HEPS) and earnings per share (EPS) for 1H FY09/24. Operating profit also fell by 9%. Despite this, assets under management (AUM) grew by 3% to £127.4 billion. The company experienced net outflows of £5.3 billion, but its strategic partnership with Sanlam, involving the transfer of R400 billion in assets, positions Ninety One for enhanced market leadership in South Africa.
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### **Lewis Group Sees Significant Growth in Credit Sales and Dividends**
Lewis Group Limited (LEW) reported a 13.6% increase in revenue to R4.4 billion for the first half of FY09/25. The company’s operating profit surged by 54.1%, driven by a 16.9% growth in credit sales. With a solid 50% increase in its interim dividend to 300c per share, Lewis Group is optimistic about its continued growth, especially as it expands its store footprint and improves its debtors’ book quality.
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### **Mr Price Group Delivers Consistent Growth, Sees Market Share Gains**
Mr Price Group Limited (MRP) achieved solid 5.2% growth in revenue for 1H FY09/25, driven by gains in all three trading segments. The group’s gross margin expanded by 110bps to 39.7%, and operating profit increased by 4%. Management remains positive about the improving economic outlook and expects continued easing of consumer pressures in the second half of the year.
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### **Spar Group Reports Strong Growth in Earnings, Navigates Consumer Pressure**
The Spar Group Limited (SPP) has posted a positive earnings performance for FY24, with EPS expected to rise by up to 30% from the previous year. Despite challenges like constrained consumer spending and IT system issues, the company has reduced its net debt by R2 billion and is moving forward with the sale of its Polish operations. The ongoing restructuring and cost management strategies are expected to support continued growth.
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### **Astral Foods Posts Robust Profit Growth, Focuses on Operational Efficiency**
Astral Foods Limited (ARL) reported impressive growth for FY09/24, with earnings per share (EPS) rising by 247% to 1,959 cents. Revenue grew by 6.4% to R20.48 billion, driven by strong performance in its poultry and feed divisions. The company is focusing on operational efficiency and strategic expansion to maintain its strong growth trajectory.
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### **Reinet Investments Reports 6.6% Increase in Net Asset Value**
Reinet Investments S.C.A. (RNI) posted a 6.6% increase in net asset value (NAV) to €6.6 billion for 1H FY09/24, reflecting steady long-term growth. The company received significant dividends from British American Tobacco and Pension Insurance Corporation, and paid a dividend of €0.35 per share. The NAV per share rose to €36.25, maintaining the company’s strong financial position.
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### **WeBuyCars Expands with New Supermarkets and Acquisitions**
WeBuyCars Holdings Limited (WBC) saw 16.5% growth in revenue for FY09/24, reaching R23.32 billion. The company continues to expand its footprint with new supermarket locations in East London, Rustenburg, and future plans for more sites. Additionally, WeBuyCars has acquired a motor dealership in Vereeniging and is enhancing its digital platforms to drive further growth in the used car retail market.
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### **Telkom Reports Growth in Mobile and Fibre Services**
Telkom SA (TKG) posted solid results for 1H FY09/25, with a 10% increase in mobile service revenue and a 15.5% rise in fibre data service revenue. Adjusted earnings showed significant growth, and the company’s focus on a data-led strategy is paying off. With strong performance in mobile and IT services, Telkom is poised for continued growth despite restructuring challenges.
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### **Southern Sun Posts Solid Results, Focuses on Cost Efficiency**
Southern Sun Limited (SSU) reported a 6% increase in revenue for 1H FY09/25, driven by strong demand from both international and domestic travelers. The group’s focus on cost restructuring and improved occupancy rates, which increased by 2.6 percentage points, positions it for sustained growth. Southern Sun remains optimistic about South Africa’s tourism industry and its hotel portfolio’s expansion.
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Companies in the news!
### **PPC Sees Growth in Profit Despite Sales Decline**
PPC Ltd (PPC) reported a 7.5% increase in operating profit for 1H FY09/24, despite a 4.2% decline in revenue. The company’s focus on cost discipline, price growth, and operational efficiencies contributed to its increased cash flow generation and expanded EBITDA margins. PPC also declared a special dividend of R521 million from the proceeds of its Rwanda disposal.
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### **Reunert Delivers Strong Financial Performance, Sees Growth Across Divisions**
Reunert Limited (RLO) reported a solid 5% increase in revenue for FY09/24, reaching R14.45 billion. The company’s operating profit grew by 7%, and its earnings per share (EPS) increased by 13%. Strong performances in the defence and Zambian power cable businesses helped drive results, and the company is focused on cost control and integrating its recent acquisitions to sustain growth.
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### **Sirius Real Estate Reports Strong Rental Growth and Increased Valuation**
Sirius Real Estate Limited (SRE) posted a 44.4% increase in operating profit for 1H FY09/24, reaching €68.6 million. The company saw strong rental growth, especially in its German and UK properties, and increased its property book value by 7.4%. Sirius remains in a healthy financial position, with strong cash reserves and a positive outlook for future acquisitions.
Snippets
MultiChoice (MCG) and Sanlam (SLM) announced fulfilment of conditions for Sanlam Life’s acquisition of 60% of MultiChoice’s insurance business, NMS Insurance Services, for R1.2 billion upfront and up to R1.5 billion potential earn-out, effective November 30, 2024.
Boxer Retail’s IPO order book is multiple times covered at the top end of the ZAR42-54 price range. The bookbuild closes on 22 November 2024. A final offer price and share allocation announcement is expected on 25 November 2024, with listing on JSE and A2X to follow.
ADvTECH (ADH) has acquired Flipper International School in Addis Ababa, Ethiopia for approximately R135 million ($7.5 million). The deal expands ADvTECH’s African footprint, adding five schools and 3,000 students. Flipper International School is renowned for academic excellence and addresses growing demand for private education in Ethiopia’s rapidly urbanizing capital.
Tiger Brands (TBS) is selling its Baby Wellbeing business to a third-party purchaser for R605 million, subject to regulatory approval. The disposal includes Elizabeth Anne’s and baby medicinal brands but excludes the Purity brand. This sale simplifies Tiger Brands’ portfolio, focusing on its core Baby Nutrition business.
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