Wrap Text
Financial results for the six months ended 31 August 2022 -
Short-form announcement
BRIKOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013247/06)
JSE Share code: BIK ISIN: ZAE000101945
(“Brikor” or the “Company” or the “Group”)
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2022 -
Short-form announcement
FINANCIAL HIGHLIGHTS
31 August 31 August
2022 2021 Change
R’m R’m %
Revenue 167,7 152,3 10,1
EBITDA 7,3 14,6 (50,00)
EPS (cps) 0,1 1,1 (90,9)
HPS (cps) 0,0 1,1 (100,0)
NAV (cps) 13,7 14,4 (4,9)
NTAV (cps) 10,3 11,0 (6,4)
Note: No dividends have been declared for the six months ended 31
August 2022 or 31 August 2021.
Revenue increased to R167,7 million (H1 F2022: R152,3 million) for
the reporting period, with the Group realising a loss before
earnings from its associate of R1,7 million (H1 F2022: profit of
R4,8 million). The investment in associate contributed positive
returns of R2,3 million (H1 F2022: R4,3 million) to the profit for
the reporting period.
Overall, gross profit decreased by 29,9% to R23,0 million (H1
F2022: R32,9 million) with the gross profit percentage decreasing
to 13,7% (H1 F2022: 21,6%).
The Group realised an operating profit before interest, taxation
and earnings from associate of R1,3 million (H1 F2022: R9,3
million). The Bricks segment realised an operating profit before
interest and taxation R12,1 million (H1 F2022: R11,2 million),
whilst the Coal segment realised an operating loss before interest
and taxation of R10,8 million (H1 F2022: R1,8 million).
Other income, administrative expenses, distribution and other
expenses remained in line with the previous reporting period.
No major capital investments were made during the current
reporting period.
BRICKS SEGMENT
Revenue in the Bricks segment increased by 11,1% to R113,7 million
(H1 F2022: R102,3 million). The Bricks segment continued to
perform at exceptional levels during the reporting period. The
increased revenue is mainly due to an increase in DIY projects,
additions and alterations as well as an increase in the informal
building sector. Adequate planning, sufficient inventory levels
and efficiencies in the production process have also contributed
to the good performance.
Gross profit in the Bricks segment decreased by 8,8% to R24,4
million (H1 F2022: R26,8 million) with the gross profit percentage
decreasing to 21,5% (H1 2022: 26,2%). Gross profit decreased
mainly as a result of the increase in carbon tax levies and diesel
used in the production process. Diesel used in the Bricks segment
increased by 60% in comparison to August 2021, with other costs
remaining fairly consistent. Continued power interruptions and
loadshedding added additional strain on production and increased
overtime was required to curb further production losses.
COAL SEGMENT
Revenue in the Coal segment increased by 8,0% to R54 million (H1
F2022: R50 million). Demand for local coal increased and sales
prices stabilised during October/November 2021, however, during
this period the mine experienced excessive rainfall which had a
direct impact on production and availability of saleable coal. The
Coal segment was only able to benefit from the increased demand
and sales prices from May 2022 as production stabilised and
inventory levels increased.
Gross profit in the Coal segment, however, decreased significantly
to a gross loss of R1,4 million (H1 2022: gross profit R6,1
million). The decrease in the gross profit is directly
attributable to increased cost of production. As a result of the
excessive rainfall and production constraints experienced in the
Coal segment for the period October 2021 to April 2022, management
took the decision to buy in additional raw materials to be
screened and washed whilst production was being increased. The
Coal segment returned to full production in May 2022, resulting in
increased yields as well as increased saleable stock.
In addition to the above, diesel used in the Coal segment
increased by 69% in comparison to the six-month period ended 31
August 2021.
SHORT-FORM STATEMENT
This short-form announcement is the responsibility of the
directors. It is only a summary of the information contained in
the full announcement and does not contain full or complete
details.
Any investment decision should be based on the full announcement
accessible from Wednesday, 23 November 2022 via the JSE link and
also available on the Company’s website at
http://brikor.net/wp-content/uploads/2022/11/INT22.pdf.
Copies of the full announcement may also be requested by
contacting Joaret Botha by email at joaret@brikor.net and are
available for inspection at the Company’s registered office at no
charge, weekdays during office hours.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2022/jse/isse/bik/INT22.pdf.
23 November 2022
Nigel
Designated adviser
Exchange Sponsors
Date: 23-11-2022 02:00:00
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