Reunert (RLO) 1H24 – Results Snapshot

Diluted HEPS 277.0cps (+4.5% y-y).
Turnover increased by 7.1% y-y to R6 642m.
Expenses increased by 6.9% y-y while expenses-to-sales decreased from 90.0% to 88.9%.
OPM increased by 10bps to 10.1%, supported by the strong results in the Electrical Engineering segment and the Applied Electronics segment’s Defence Cluster.
Dividend of 90cps.
Cash generated from operating activities increased from R339m to R503m.
RLO’s Total Workspace Provider, under the Nashua brand, business was unable to resolve the logistics challenges during 1H24, which resulted in a shortfall of imported product and led to a large reduction in sales and operating profit in the period, which negatively impacted the ICT segment’s and group’s results.