Afrimat (AFT) AGM 2026 presentation summary

FY2026 financial performance

• Revenue rose 20.3% to R10.0bn from R8.3bn; HEPS increased to 95.8 cents from 72.3 cents.

• Net asset value was 2,899 cents per share versus 2,862 cents; final dividend was 13 cents and total dividend was 33 cents.

• Operating profit margin was 8.0% versus 7.3%; return on net operating assets was 50.2% versus 48.9%; net debt-to-equity ratio was 5.2% versus 5.7%.

• Cash preservation remained a focus to strengthen the balance sheet.

Construction materials

• Aggregates delivered improved product sales and operational efficiency; integration was completed, and non-core brick, block and readymix assets were divested.

• R160m in divestiture proceeds was used to reduce debt; the project pipeline spans roads, rail, infrastructure, building and construction.

• Aggregate demand is supported by public infrastructure, private building, residential development and renewable energy projects; fuel costs continued to weigh on margins.

• Fly ash sales continued to perform strongly, including contributions from operations acquired in the Lafarge transaction.

• Cement sales volume grew 36% and revenue 54%; clinker production increased 19% YoY, with thermal energy cost down 21% and startup fuel cost down 58% per ton of clinker.

Bulk commodities and industrial minerals

• Iron ore domestic sales steadied in Q2 after erratic Q1 volumes; international sales faced weak realised Rand prices, while volumes remained ~15% below allocation.

• Transnet's May 2026 10-day maintenance shutdown was its most successful in recent years; another 10-day shutdown was scheduled for October 2026.

• A 240,000 tpa manganese allocation on the MECA III line was secured for seven years; FY27 exports were forecast at 240,000, with seven vessels confirmed.

• Nkomati Anthracite Mine was ramping up; a reduced electricity tariff was approved for the ferrochrome industry, with two additional smelters expected to open by September or October.

• Industrial minerals were being taken by ferrochrome smelters; agricultural lime demand was expected to rise during planting season.