KayDav interim results June 2018
Revenue for the interim period increased to R464.6 million (2017: R434.8 million). Gross profit increased to R124.1 million (2017: R121 million). Operating profit grew to R13.2 million (2017: R2.1 million). Total comprehensive profit attributable to equity holders of the parent was recorded at R7.3million (2017: total comprehensive loss of R1.1 million). Furthermore, headline earnings per share amounted to 4.1 cents per share (2017: headline loss per share of 0.7 cents per share).
Distributions to shareholders
The KayDav board of directors has decided that no distribution to shareholders will be made for the six months ended 30 June 2018.
Board Distribution and Adaptation
The wood-based panel industry is seasonal with the majority of revenue and profits made during the second half of the year. While the normal seasonal upswing will occur as usual, low business confidence levels and consumer caution will continue to constrain year-on-year growth. While it is unclear when the general economy will improve, with the benefits it will bring to KayDav, management will continue to deal with factors within its control including improvement of our service and product offering to customers, containment of costs and strong working capital management.
Strong revenue and profit growth occurred at our Johannesburg operation during the first six months of 2018 and we expect the strong growth to continue. However, our Cape Town operation experienced tougher trading conditions with the drought affecting agricultural output. When agricultural production and general economic activity in the Western Cape return to pre-drought levels, profitable growth will return.