Hudaco (HDC) FY23 – Results Snapshot

Diluted HEPS of 2 073 cps (FY22: 1 926 cps).
Turnover growth of +9.1% (FY22: 12.3%).
GPM decreased -70 bps to 36.0% (FY22: 36.7%).
Operating margin down by -50bps to 12.0% (FY22: 12.5%).
Operating expenses of R2.1bn, up from R2.0bn LY. Expense to sales down -90bps to 23.7% (FY22: 24.6%).
Dividend up +10.8% to 1 025 cps (FY22: 925).
Group delivered pleasing results despite growing concerns and challenges in the South African economy.
Increase in bank borrowings from R621m to R1 013m was due to the allocation towards working capital increasing R392m.
A 13% increase in cost of stock recorded as a result of a weakening Rand, acquisition of Brigit Fire and investments in the alternative energy businesses.
Lower volumes and margins in Consumer-related products segment due to challenging consumer environment.
Mining and manufacturing recorded good growth within the Engineering consumables segment.