Afrimat (AFT) AGM 2024 presetation summary

Strategy and diversification

• Structured diversification spans Construction Materials, Industrial Minerals, Bulk Commodities, and Future Materials and Metals.

• Strategic acquisitions supported a 19.0% PAT CAGR from Feb 2009 to Feb 2024 and more than a decade of smooth growth.

• Core strengths include nimble repositioning, disciplined integration, culture, structural cost advantages, and multi-discipline project execution.

• Capital allocation is measured by RONA, with strong cash generation supporting acquisitions, capex, and dividends; FY2024 RONA was 25.6%.

FY2024 financial performance

• Revenue rose 23.9% to R6.1bn; HEPS increased 24.0% to 567.3 cents per share.

• Operating profit margin was 18.9%; final dividend was 154.0 cents per share.

• Net asset value increased 15.9% to 3,004 cents; net debt-to-equity was 1.4%.

• Net cash from operating activities rose 25.3% to R1.2bn.

Segment performance

• Bulk Commodities revenue increased 19.3% to R2,958m; operating profit was R958m at a 32.4% margin.

• Bulk international iron ore volumes were 15% below allocation due to Transnet underperformance; local iron ore volumes rose 75.7%.

• Industrial Minerals operating profit fell 72.1% to R14m; load shedding affected operations and clients.

• Construction Materials revenue increased 22.3% to R2,213m; operating profit rose 111.0% to R273m, with a 12.4% margin.

• Future Materials and Metals revenue was R31m; SSP commissioning and ramp-up were underway, with total start-up losses of R26.5m.