Metair (MTA) 1H23 Results Snapshot

Diluted HEPS 41.0cps (-6.8% y-y).
Turnover increased by 31.2% y-y to R7 639m, reflecting the recovery in local OEM sales volumes.
GPM increased by 430bps to 11.5%.
OPM increased by 180bps to 4.2%.
Expenses increased by 8.4% y-y while expense to sales decreased from 10.7% to 8.8%.
No dividend.
Cash generated from operating activities remains negative at R-457m.
The group commenced mass production and volume ramp-up for new customer vehicle models, most notably for FMCSA (“Ford”).
The impact of IAS 29 on Mutlu’s pre-hyperinflationary results and consequently on Metair’s consolidated results are operating profit decline of R182m, profit after tax gain of R9m from restatements, net monetary gain amounting to R180m and an uplift in assets of R1.8 billion and R1.7 billion in equity relating to foreign currency translation gains.