KAP Ltd (KAP) 1H24 – Results Snapshot

Diluted HEPS 21.7cps (-33.8% y-y).
Turnover decreased by -1.6% y-y to R15 028m.
GPM increased by 20bps to 18.4%.
OPM decreased by 180bps to 8.2%.
Expenses increased by 21.6% with expense-to-sales increasing from 8.3% to 10.2%.
No dividend.
Cash generated from operating activities improved from -R575m to R91m.
In October 2023, management established that a raw material supplier had incorrectly applied a contractual pricing formula for the period 1 February 2022 to 30 September 2023. This resulted in Safripol being overcharged by R183m for raw material purchases, R163m of which relates to FY23, of which R107m relates to 1H23. The error was immediately corrected, and the overcharges were recovered from the supplier.