Afrimat (AFT) H2 2025 earnings summary

Executive summary

• Lafarge SA acquisition integrated; full-year revenue increased 36.7% to R8.3bn, while HEPS fell 4.7% to 72.3 cents.

• Cement operations incurred a R285.4m loss; recovery in Industrial Minerals and improved Nkomati performance partly offset pressure across the year.

• Priorities include improving cement profitability, growing volumes, and generating cash to reduce debt.

Financial highlights

• Revenue rose 36.7% to R8.3bn; operating profit margin was 5.7%, versus 18.9% in FY2024.

• HEPS was 72.3 cents, down 4.7%; net asset value was 2,862 cents per share and the final dividend was 15 cents per share.

• Cash generation improved in 2H FY2025; cash at year-end was R301.3m, down 40.3% YoY.

Outlook and guidance

• Aggregates guidance adds 3m tonnes per annum, excluding divested asset volumes; cement volumes are expected to increase from 877,000 tonnes to 1.2m tonnes.

• Cement priorities are to turn around loss-making operations and target profitability through innovation and operating efficiency.

• Focus areas include anthracite exports, increasing iron ore supply to AMSA, optimising Nkomati’s life-of-mine plan, and paying down debt through stronger cash generation.