KAP’s share price surged 7.5% on Friday after the diversified chemical, industrial and logistics group said earnings per share will increase by between 96% and 115% for the year to June 30, 2024.
The company said in a trading statement that KAP remained resilient in a challenging trading environment, with five of its six divisions delivering an improved performance compared to the prior year.
This was offset by a weaker performance by Safripol, which continued to be affected by a cyclical low in the global polymers industry.
EPS, when the group anticipated to release its annual results on August 20, were expected to be between 41.8 cents and 45.8 cents, compared to the EPS of 21.3 cents reported for the 2023 financial year.
Notably, the 2023 financial results had included a R570 million non-cash impairment of intangibles, net of taxation, related to Unitrans.
Headline earnings per share would be between 43.3 cents and 47.3 cents, representing a decrease of between 0% and 8% compared to the HEPS of 47.3 cents reported for 2023.
The group commissioned its major capital projects in the second half of the financial year, and these were expected to meaningfully contribute to the group’s future earnings and enable a planned debt reduction.
The group remained within its financial covenant ratios. The share price was trading at R3.15 on Friday afternoon, almost 22% higher than at the same time last year.
BUSINESS REPORT