Sasol, Anglo American Platinum, Kumba Iron Ore and more results

Anglo American Platinum 

Highlights

Sector: Precious Metals & Mining
Price: R1 058.64
52-Week Range: R1 012.50-R2 675.38
Market Cap: R292.09 billion
Return YTD: -25.70%
Return (1 Year): -52.34%
Return (3 Years): -14.87%
Return (5 Years): 179.22%
Price/Earnings: 5.94x
Dividend Yield: 6.81%

Revenue declined by 24% to R164.1 billion, it’s adjusted operating profits fell by 32% to R73.9 billion. The miner produced 4.0 million platinum group metal (PGM) ounces in 2022, while refined production for the year declined to 3.8 million PGM ounces. Operating profits of R74 billion were achieved despite lower sales volumes in the year due to the highest rand basket price on record. The miner’s return on capital employed remains strong at 111%, although it is much lower than the 183% achieved in the prior year. The miner’s basic earnings per share and headline earnings per share both contracted by 38% to R186.67 and R185.42 respectively. The dividend per share fell by 62% to R115.

Sasol

Highlights

Sector: Chemicals
Price: R265.97
52-Week Range: R256.44-R438.60
Market Cap: R177.26 billion
Return YTD: -1.28%
Return (1 Year): -19.70%
Return (3 Years): 45.75%
Return (5 Years): -33.32%
Price/Earnings: 4.42x
Dividend Yield: 7.77%
 

Sasol released a mixed set of first-half results, which were supported by higher oil prices but offset by operational difficulties in their mining and synfuels operations. The impact from the global weaker economic growth, disrupted supply chains, depressed chemical prices and the resultant higher input costs impacted the Chemicals business negatively. Its earnings came in pretty much in line with the prior year at R24.2 billion due to strong pricing environment which was offset by lower volumes and increasing cost pressures. Sasol will pay a R7 dividend per share. No dividend was paid in 2020 and 2021, but in 2022 it paid a final dividend of R14.70/share. The company expects further pricing and demand volatility for the rest of 2023, given a volatile global macro environment

Motus

Highlights

Sector: Automotive
Price: R109.42
52-Week Range: R77.62-R124.33
Market Cap: R19.4 billion
Return YTD: -1.14%
Return (1 Year): 0.7%
Return (3 Years): 45.68%
Return (5 Years): 30.44%
Price/Earnings: 5.63x
Dividend Yield: 6.12%

Motus released a positive set of interim results for its first half, the company upped its dividend 9% year on year to 300c as its revenue rose 14% year on year to R51.22bn, operating profit 22% to R2.62bn and profit 10% to R1.55bn, despite shortages of some vehicle models over the last 18 months and high inflation and interest hikes weighed on the disposable income of consumers. The number of new and pre-owned sold declined 0.8% and 8.7%, respectively, to 66,147 and 43,422 units.

Adcock Ingram

Highlights

Sector: Pharmaceuticals
Price: R54.33
52-Week Range: R44.11-R58.27
Market Cap: R8.78 billion
Return YTD: 7.58%
Return (1 Year): 1.90%
Return (3 Years): 27.27%
Return (5 Years): -23.65%
Price/Earnings: 9.42x
Dividend Yield: 4.52%
 

Adcock increased its dividend due to higher revenue, trading profit and profit. Its profit increased by almost one-fifth, trading profit 15% and revenue 8% year on year in the six months to end-December as the interim dividend increased by 20% to 125c despite an uncertain macro environment, higher energy, food and commodity prices and higher inflation. From a trading profit perspective, the consumer division, which focuses on consumer goods, was the best performer over-the-counter (OTC), which is aimed at the brands sold predominantly in pharmacies. Trading conditions are expected to remain challenging, with consumers facing considerable hardship because of elevated transport, electricity, food and borrowing costs.

A low single exit price adjustment of 3.28% (well below inflation) should put some pressure on gross margins in the new year.

Kumba Iron Ore

Highlights

Sector: Industrials Metals & Metals
Price: R495.92
52-Week Range: R339.91-R699.17
Market Cap: R174.01 billion
Return YTD: 0.74%
Return (1 Year): -19.50%
Return (3 Years): 61.07%
Return (5 Years): 34.28%
Price/Earnings: 9.61x
Dividend Yield: 8.03%

Kumba, saw net profit decrease by 55% to R19.7billion, while headline earnings per share fell 46% to about R56 per share due to a decrease in global iron ore prices and disruptions to Transnet’s rail and port services. The company will pay a total dividend of R45 per share against the 2021 dividend of R103 per share. Total production for the year decreased by 8% to 37.7-million tonnes, ore railed was down 9% to 35.9-million tonnes and export sales decreased 9% to 36.6-million tonnes. The largest impact has been from rail constraints, including industrial action at Transnet and poor rail performance throughout the year. The miner was also affected by extreme weather conditions. Global iron ore prices decreased by 27% to $100/tonne (wet metric tonnes) as commodity markets came under pressure. Kumba achieved an average realised FOB price of $113/tonne, 13% above the equivalent benchmark iron ore price, for its high grade ore.

BHP

Highlights

Sector: Industrials Metals & Metals
Price: R551.67
52-Week Range: R406.81-R622.30
Market Cap: R3 077.89 billion
Return YTD: 4.73%
Return (1 Year): 29.71%
Return (3 Years): 118.20%
Return (5 Years): 157.70%
Price/Earnings: 9.83x
Dividend Yield: 7.57%

Diversified miner, BHP, released a resilient set of half year results for the period ended 31 December 2022. Revenues decreased by 24% to US$25.7 billion, earnings before interest, taxes, depreciation, and amortisation decreased by to $13.2 billion from US$18.5 billion and profit for the year decreased by 32% year-on-year to US$6.5 billion. The lower financial results are because of lower realised prices for iron ore and copper, higher royalties in Australia, and inflationary pressure across the group. The miner financial results were supported however by higher realised prices for thermal coal and nickel and favourable currency movements. The miner expects a stronger second half of the year due to China’s economic reopening and the anticipated higher demand from that.

Truworths

Highlights

Sector: Retailers 
Price: R61.23
52-Week Range: R45.86-R69.90
Market Cap: R24.7 billion
Return YTD: 11.33%
Return (1 Year): -0.17%
Return (3 Years): 24.01%
Return (5 Years): -42.96%
Price/Earnings: 6.7x
Dividend Yield: 8.9%

Truworths released a positive set of half year results for the period ended 1 January 2023, however investors did not respond posititively to its results most likely due to the increasein credit sales that it reported. Truworths Africa, it’s Southern African operations sold 70% on credit and the amount owed on accounts increased by 20% to R7.1 billion. Retail sales for the company increased 13.7% to R11.3 billion and profit before finance costs and tax increased 5.6% to R2.7 billion. The retailers gross and operating margins remain strong at 53.5% (53.6% H1:2022) and 24.7% (26.5% H1: 2022) respectively. Earnings per share and headline earnings per share increased by 12.5% and 10.3% respectively, while the half-year dividend was increased by 6.7% to 320 cents.

Discovery
 

Highlights

Sector: Life Insurance
Price: R144.15
52-Week Range: R100.73-R184.82
Market Cap: R97.8 billion
Return YTD: 16.86%
Return (1 Year): -4.19%
Return (3 Years): 48.22%
Return (5 Years): -16.24%
Price/Earnings: 19.46x
Dividend Yield: - 

Discovery delivered a robust set of interim results for the period ended 31 December 2022. Normalised profit from operations increased 22% to R5.9 billion, while profit from operations contracted slightly by 2% to R5.09 billion. Discovery Life operating profit increased by 30% to R2.5 billion, Discovery Health operating profit increased by 4% to R1.8 billion, Discovery Invest operating profit increased by 15% to R592 million, while Discovery Insure operating profit decreased by 73% to R4 million and the losses at Discovery Bank contracted and have improved 20% to a loss of R398 million. The company decided to withhold an interim dividend again.