Hudaco (HDC) 1H23 – Results Snapshot

Diluted HEPS of 878.0 cps (1H22: 800.0 cps).
Turnover growth of +12.4% y-y (1H22: +11.8%).
GPM down -130 bps to 35.3% (1H22: 36.6%).
Operating margin down to 10.9% (1H22: 12.0%).
Expenses of R1 027m with Expense to sales ratio of 24.2% (1H22: 24.7%).
Dividend of 325 cps (1H22: 300 cps).
Cash generated from trading amounted to R581m, with R335m reinvested in working capital as management anticipates a busier second half to the year.
Consumer-related products segment benefitted from growth and market share in alternative energy, security, communications and gas and outdoor sectors. Reduced volumes experienced in automotive products and power tools. Turnover growth of +13.2% (1H22: +11.7%).
Engineering consumables segment turnover growth of +11.8% (1H22: +12.0%) driven mainly from mining and manufacturing sectors.