On 12 May 2025, Metair hosted a site visit to the First Battery and AutoZone operations in Johannesburg. We were given a tour of the First Battery recycling and smelting plant in Benoni, AutoZone’s outlet in Boksburg and AutoZone’s warehouse in Denver.
First Battery manufacturing and recycling operate at capacity and stable margins. The company has a comprehensive battery range to meet a variety of consumer demands. The shift in strategy to be a more consumer-centric business should be positive, especially in times of unstable OEM manufacturing volumes.
For First Battery to stay competitive and grow margins, First Battery would need to invest in expanding operations. Management is planning to spend R250m to expand battery smelting and manufacturing operations in the medium term.
AutoZone has made good progress, from an operational perspective in consolidating and integrating with Metair thus far. AutoZone has replenished its warehouse stock levels to normal levels. The improved supply chain and the ability to replenish stock in AutoZone stores, bodes well for the company.
AutoZone has considerable potential in Metair’s portfolio, however, if AutoZone fails to achieve the required EBIT levels, then it could be a drag on Metair’s earnings.