KAP Ltd. (KAP) FY23 – Results Snapshot

Diluted HEPS 41.9cps (-42.8% y-y).
Turnover increased by 5.9% y-y to R29 628m.
GPM decreased by 31bps to 16.6%.
OPM decreased by 49bps to 5.2%.
Expenses increased by 25.6% with expense to sales increasing to 11.4% from 9.6%.
No dividend.
Cash generated from operating activities up 32.3% y-y to R2 606m.
PG Bison achieved a 14% expansion in total annual raw board capacity to 830 000 m³, completed in March 2022.
The group will complete a number of capital projects in FY24, with the largest being PG Bison’s MDF expansion in Mkhondo, at a total capital expenditure of R1.9 billion (R661m spend to date, with R1.2bn due in FY24 and R57m due in FY25), with commissioning planned for July 2024.