NUTRITIONAL HOLDINGS LIMITED - Nutritional Holdings Condensed Consolidated Interim Results, operational update for the 6 months 31 August 2020

Nutritional Holdings Condensed Consolidated Interim Results, operational update for the 6 months 31 August 2020

Nutritional Holdings Limited
(Registration number: 2004/002282/06)
(Incorporated in the Republic of South Africa)
(Share Code: NUT ISIN Code: ZAE000156485)
(“Nutritional Holdings” or “the Company”)


Nutritional Holdings Condensed Consolidated Interim Results and operational update
for the 6 months ended 31 August 2020


Nutritional Holdings is pleased to announce an increase of approximately 537% in operating
profit before interest and tax for the six months ended 31 August 2020 to R16.4 million profit,
relative to the R3.7million loss generated in the previous comparable period. This result is due
to excellent performance from the Cannabis Acquisitions and good overall business
momentum, which reflects continued progress with the business growth strategy in line with
the 5 year business plan.

1) Financial Highlights

   •   Revenue increased by 102% to R33.724 million (HY20: R16.706 million)
   •   Operating profit before interest and tax increased 537% to R16.476 million (HY20:
       R3.773 million loss)
   •   HEPS increased by 325% to 0.08 cents per share (HY20: 0.03 cents loss per share)
   •   EPS increased by 325% to 0.08 cents per share (HY20: 0.03 cents loss per share)


FINANCIAL SUMMARY
                                                        31 August 2020    31 August 2019 % Change
Income statement
Revenue                                         R'000           33 724           16 706      102%
Operating profit/(Loss) before interest & tax   R'000           16 476            (3773)     537%
Profit/(loss) for the year                      R'000           10 632            (4730)     325%

Statement of financial position
Total assets                                    R'000           60 717           39 249       55%
Total liabilities                               R'000           27 011           26 033        4%
Total shareholders’ funds                       R'000           33 706           13 216      155%
Net asset value per share                       cents             0.25             0.10      155%

Shares in issue
At end of period excluding treasury shares      000          13 653 368      13 653 368     -
Weighted average                                000          13 653 368      13 653 368     -

Basic earnings/(loss) per share                 cents              0.08            (0.03)    325%
Headline earnings/(loss) per share              cents              0.08            (0.03)    325%
2) Overview

In assessing these interim results, it should be noted that the Ukusekela Holdings
management contract performed strongly with both the operational and financial results for
the 6 months despite the challenges from Covid 19. The acquisition of Ukusekala Holding
become effective 1 October 2020. In addition, the new Indiva acquisition is not included in
these results as the acquisition was done after 31 August 2020, and management expects
strong profitability to be realised from this acquisition. These acquisitions which will be
reflected in the full year results.

The largest factor in achieving the profit must be attributed to exponential demand and
resultant growth in the sale of Cannabis associated products with the Cannabis operations
reflecting significant growth and profitability. With two large export sales agreements
concluded viz. the German market for R 1 Billion (One Billion) and the Japanese market for
R800 Million (Eight Hundred Million), the results are expected to gain momentum in the last
quarter of the financial year with full realisation in the 2022 financial year.

The company is confident that the second half of the financial year will deliver stronger
performance with the full integration of the acquisitions into the operations as management
continue to streamline and work toward higher capacity and economies of scale as demand
for cannabis products continue to grow.

Nutritional Holdings has made pleasing progress in recent times to elevate governance and
accountability within the business and to shift the culture. The Group has also strengthened
Financial discipline, oversight and assurance with the appointment of key positions such as a
Chief Financial Officer, Company Secretary & Strategic Board Positions.

The Board is currently reviewing its dividend policy to create an income stream for
shareholders and stakeholders and the current share buy-back is the first step in this process.


3) Short-form Announcement

This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the Full Announcement and does not contain full or complete details.

The Full Announcement can be found at:
https://senspdf.jse.co.za/documents/2020/jse/isse/nut/INT2020.pdf


Copies of the Full Announcement are also available for viewing on the Company’s website at
https://www.nutritionalholdingssa.com or may be requested in person, at the Company’s
registered office or the offices of our sponsors, at no charge, during office hours.



Durban
14 December 2020

Designated Adviser
Exchange Sponsors

Date: 14-12-2020 11:42:00
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