Reunert reports modest operating profit and revenue growth

Reunert Limited has released its unaudited financial results for the six months ended 31 March 2024, revealing modest operating revenue and profit growth.

It noted that the macroeconomic conditions in South Africa and national port and logistics disruptions were among the challenges it faced during the reporting period.

“The management teams responded well to these challenges and managed their operations to meet most customer commitments,” it said.

It reported operating revenue of R6.64 billion between 31 September 2023 and 31 March 2024 — up 7% from R6.20 billion for the same period the year before.

This came with a 9% increase in operating profit from R620 million to R674 million.

“The Group’s 9% increase in operating profit to R674 million (H1 FY: 2023: R620 million) was driven by the strong results in the Electrical Engineering Segment and the Applied Electronics Segment’s Defence Cluster,” Reunert said.

It noted that these figures were negatively impacted by a significant reduction in sales relating to its Total Workspace Provider, operating under the Nashua brand.

“Unfortunately, our Total Workspace Provider, under the Nashua brand, business was unable to resolve the logistics challenges during H1 FY: 2024,” it said.

“This resulted in a noteworthy shortfall of imported product and led to a large reduction in sales and operating profit in the period, which negatively impacted the ICT Segment’s and Group’s results.”

Its financial results also show that the Reunert Group’s earnings per share increased by 12%, while its headline earnings per share grew by 8%.

The company noted that its solar energy business performed well, with build rates and margins improving significantly during the reporting period.

“The Battery Storage business has secured several large battery storage contracts and is expected to deliver an improved performance in H2 FY: 2024,” it added.