Please note ThinkMarkets does not provide CFD services to residents of the US.

Please note ThinkMarkets does not provide CFD services to residents of the US.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Learn More
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

South African Equities Earnings Review: 5- 9 September 2022

Lesego Mthombothi Lesego Mthombothi 12/09/2022
South African Equities Earnings Review: 5- 9 September 2022 South African Equities Earnings Review: 5- 9 September 2022
South African Equities Earnings Review: 5- 9 September 2022 Lesego Mthombothi
5 September 2022

AVI (AVI) - Results for the Year Ended 30 June 2022

Consensus Recommendation     BUY



 
Highlights Actual Change
Revenue R13.8 billion 4.3%
Operating profit R2.5 billion 5.4%
HEPS 530.6 cents 6.1%
DPS 292 cents 6.2%
Valuation Price to Earnings Dividend Yield
AVI 13.8x 6.3%
FTSE/JSE Food Producers 13.1x 5.6%


AVI reported robust headline earnings which have returned to pre-pandemic levels. The Group’s Entyce Beverages division (teas and coffees) revenue and operating profit increased by 5.4% and 0.9% respectively to R3.9 billion and R880 million, as revenue growth was partly offset by margin pressure from higher commodity input costs. Snackworks (biscuits and snacks) revenue and operating profit increased by 10.2% and 8.2% respectively to R4.7 billion and R881 million as price increases and volume growth were offset by cost pressure from rising raw material prices and raw material write-off costs associated with the 2021 July social unrest. I&J performed weaker with revenue and operating profit contractions of 5.1% and 10.4% respectively to R2.5 billion and R306 million, due to weaker fishing performance with a stronger Rand and higher fuel prices partly offset by abalone recovery. Fashion brands (Personal Care and Footwear & Apparel) revenue and operating profit increased by 2.6% and 23.7% respectively to R2.7 billion and R496 million, as price increases were partially offset by lower volumes in personal care and higher realised selling prices were partly offset by lower volumes and write-off costs relating to the July unrest in footwear & apparel.

RCL Foods (RCL) - Group Financial Results and Cash Dividend Declaration for the Year Ended June 2022 

Consensus Recommendation          STRONG SELL


 
Highlights Actual Change
Revenue R34.9 billion 10.2%
EBITDA R2.6 billion 7.7%
HEPS  118.6 cents 9.9%
DPS 30 cents  
Valuation Price to Earnings Dividend Yield
RCL 9.7x 3.9%
FTSE/JSE Food Producers 13.1x 5.6%


RCL reported a robust set of final year results for the period ended 30 June 2022 which reflected a strong recovery in its chicken business that it wants to offload, Rainbow Chicken, which has returned to profitability. Revenue for the group's five main revenue lines increased by 10.2%. Revenue for its Groceries division increased by 8.8% to R6.0 billion and EBITDA decreased by 1.4% to R550 million as the revenue growth was offset by margin pressure in Pies and Beverages. Baking revenue increased by 6.2% to R6.2 billion, while EBITDA contracted by 6.3% to R488 million, as margin pressure came in, in H22022, driven by high wheat and fuel costs. Sugar revenue increased by 7.2%, while EBITDA decreased by 9.3% but is the second highest profit for the division of R817 million. Rainbow revenue and underlying EBITDA increased by 10.1% and 214% respectively to R11.4 billion and R349 million, driven by better pricing and agricultural results despite higher commodity costs. The Group’s logistics business, Vector Logistics, which it intends to offload to streamline the overall business, reported revenue and EBITDA growth of 17.1% and 18.3% respectively to R3.7 billion and R335 million. 

Bidvest (BVT) - Audited Financial Results and Cash Dividend Declaration for the financial year ended 30 June 2022
 
Consensus Recommendation     BUY


 
Highlights Actual       Change
Revenue           R99.9 billion              13%
Trading Profit R9.7 billion 23%
HEPS 1601.5 cents        24%
DPS 744 cents      24%
Valuation Price to Earnings Dividend Yield
Bidvest 15.4x 3.3%
FTSE/JSE General Industrials 9.0x 3.7%

Bidvest reported a strong and impressive set of annual results. The Group’s Services International revenue and trading profit increased by 27% and 15% respectively to R27.4billion and R3.1 billion as the businesses benefited from scale and the full-year contributions from UK and Ireland acquisitions. Branded products revenue and trading profit increased by 7% and 28% respectively to R19.1 billion and R1.9 billion driven by record pharma sales and profits. Freight revenue and trading profit expanded by 20% and 37% respectively to R7.4 billion and R1.8 billion driven by record bulk commodity volumes. Commercial Products revenue and trading profit increased by 7% and 27% respectively to R15 billion and R1.2 billion. Services South Africa's revenue and trading profit increased by 14% and 37% respectively to R8.2 billion and R900 million a strong recovery in travel and tourism. Automotive revenue and trading profit increased by 12% and 26% respectively to R23.7 billion and R800 million as price and volume increases for new vehicles. Lastly, Financial Services revenue and trading profit contracted by 8% and 74% respectively to R2.4 billion and R86 million. A final dividend of 364 cents was declared, which is the biggest dividend declared in seven years.

 6 September 2022
 
Shoprite (SHP)
 
Consensus Recommendation    BUY


 
Highlights Actual Change
Sales R184 billion 9.6%
Gross Profit R45.1 billion -7%
Diluted HEPS 1048.1 cents 10%
DPS 367 cents  
Valuation Price to Earnings Dividend Yield
Shoprite 21.8x 2.6%
FTSE/JSE Personal Care, Drug & grocery stores 22x 2.5%

Shoprite is growing market share and has done so for the past 40 consecutive months. Shoprite now operates in 10 countries after exiting Madagascar and Uganda. Supermarkets RSA reported revenue and trading profit growth of 10.1% and 7% respectively. Like-for-like sales increased by 8.5%, with internal selling price inflation of 3.9% (close to 5% during H22022). The Shoprite and USave brands reported revenue growth of 7.2% to R77.9 billion, the Checkers and Checkers Hyper brands reported revenue growth of 9.1% to R58.7 billion while the LiquorShop brands reported revenue growth of R10.8 billion. Supermarkets Non-RSA delivered revenue and trading profit growth of 10.4% and 43% respectively, while Furniture revenue and trading profit contracted by 1.4% and 45% due to a high base effect and the closure of stores due to the July 2021 social unrest. The Groups other operating segments which include MediRite Pharmacies and Computicket delivered revenue growth of 8.5% to R12.9 billion and trading profit increased by 24.7%. The gross margin was maintained at 24.5% and the trading profit margin contracted slightly to 6.0% (FY2021: 6.1%). The Group opened 181 stores expanding its footprint to 2 989 stores. The total dividend for the year of 600 cents per share represents 10% growth.

7 September 2022

Discovery (DSY) - Audited results for the year ended 30 June 2022

Consensus Recommendation     STRONG BUY


 
Highlights                   Actual           Change
New Business R23.1 billion 5%
Normalised operating profit    R9.4 billion       45%
Normalised HEPS     885 cents        71%
DPS                    nil        -
Valuation                           Price to Earnings    Dividend Yield 
Discovery 14.1x -
FTSE/JSE Life Insurance 10.0x 4.4%

Discovery reported its highest normalised headline earnings driven by strong performance in its SA Health, Life and Invest businesses. Discovery Bank reported a R990 million operating loss, which is 10% lower than FY2021, though their banking business is gaining significant traction. Retail deposits and advances increased by 30% and 14% respectively to R10.6 billion and R4.2 billion. Discovery Health’s gross inflows and normalised operating profit increased by 7% and 5% respectively to R97.2 billion and R3.6 billion, while Discovery Life’s gross inflows and normalised earnings improved impressively by 10% and 200% respectively to R15.1 billion and R4 billion. Discovery Invest’s gross inflows and normalised operating profit increased by 2% and 11% to R24.6 billion and R1.2 billion. Total AuA (assets under administration) and AUM (assets under management) increased by 4% and 7% respectively to R122 billion and R81 billion. Discovery Insure gross inflows increased by 14% to R4.7 billion but however made an operating loss of R162 million, a significant contraction of 165% from the prior year's profit, largely driven by the KZN floods in April and motor vehicle parts inflation. In the UK, VitalityHealth and VitalityLife gross inflows increased by 3% and 4% respectively to R11.7 billion and R6.9 billion, while normalised operating profit increased by 43% and 7% respectively. The Group decided to maintain its no-dividend policy despite a strong performance.

8 September 2022
 
Sanlam (SLM) - Group Interim Results for the six months ended 30 June 2022

Consensus Recommendation     STRONG BUY


 
Highlights Actual Change
Net result from financial services R4.6 billion     1%
Net client cash flows R37.1 billion -2%
Diluted HEPS    177 cents -7%
Valuation      Price to Earnings Dividend Yield
Sanlam 13.2x 6.0%
FTSE/JSE Life Insurance 10.0x 4.4%


The Group’s general insurance operations suffered due to adverse weather, flooding in KwaZulu-Natal and rising claims costs driven by accelerating inflationary pressures. The net result from Life Insurance increased by 23% to R2.7 billion, while the net result from General Insurance decreased by 57%. The net result from Investment Management and Credit Structuring increased by 25% and 22% respectively. The Life Insurance division's net client cash flows increased by a strong 65%. Net operational earnings decreased by 7% to R4.4 billion. The Group’s life insurance new business volume decreased by 1% to R33.2 billion, while the net value of the new life insurance business decreased by 17% to R1.1 billion. The net value of new business margin expanded slightly to 2.89% from 2.82%. Net client cash inflows contracted by 2% to R37.1 billion. The Group’s emerging market business delivered a 12% drop in net result from financial services due to the decline in Moroccan equity markets. 
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

Honoring South African Women shaping the worl...

By Carl Capolingua

16/08/2023

Join the hype around the launch of the new ME...

By Alejandro Zambrano

06/07/2023

Top 5 AI Stocks in 2023

By Carl Capolingua

13/06/2023

US interest rates in balance as traders await...

By Carl Capolingua

10/05/2023

Charts show Banking Crisis echoing GFC meltdown

By Carl Capolingua

04/05/2023

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top