Imperial Logistics said on Tuesday its annual earnings jumped 218%, helped by a strong recovery in volumes across most businesses, though the South African company withheld a final dividend following a takeover offer from Dubai's DP World.
Source: ©Taina Sohlman via 123RF
The African-focused distributor of automotive, chemicals, pharmaceutical and consumer goods, said its headline earnings per share (HEPS), the main profit measure in South Africa, rose to 334c in the year ended 30 June, up from 105c in 2020.
Revenue rose 13% to R52.2bn ($3.67bn), supported by higher volumes as Covid-19 lockdown restrictions eased in certain key markets, while new business gains and acquisitions also contributed to the performance.
However, businesses exposed to alcohol and tobacco sales in Africa and its European operations in the automotive sector were affected by lockdown restrictions and global chip shortage, respectively.
Operating profit jumped 60% to R2.3bn, also supported by well-managed costs across all businesses, Imperial said.
In July, DP World made a cash offer of R12.73bn to buy all shares of Imperial Logistics, giving the Dubai state-owned port operator a stronger foothold in the African continent. The company said it would reduce its offer amount if Imperial declares a final dividend.
Imperial said the deal is in progress and still subject to outstanding regulatory and shareholder approvals, and other conditions precedent. It expects the deal to be concluded by next February.