Hulamin (HLM) H2 2024 earnings summary

Executive summary

• Achieved a record low Lost Time Injury Frequency Rate below 0.1x, emphasizing ongoing safety improvements.

• Sales volumes increased 2% year-over-year to 173,000 tons, despite operational disruptions from a fire.

• Local sales accounted for 55% of total, with export sales impacted by weaker mix and fire-related capacity loss.

• Strategic focus on high-margin products and capacity allocation, with continued investment in wide can body capability.

Financial highlights

• Normalized EBITDA reached ZAR 544 million; normalized EBIT was ZAR 379 million, down 22% year-over-year.

• Normalized headline earnings for the year were ZAR 142 million.

• Net debt closed at ZAR 1.3 billion, with ZAR 700 million headroom on a ZAR 2 billion facility.

• Finance costs totaled ZAR 183 million, driven by higher interest rates and increased debt.

• CapEx spend was ZAR 569 million, with ZAR 295 million allocated to expansion and improvement.

Outlook and guidance

• Focus on liquidity protection and inventory build for a 25-day strategic shutdown in June 2025.

• Net debt expected to rise in H1 2025, then decrease as inventory is offloaded post-shutdown.

• Wide can body project final phase to complete in July 2025; ramp-up to full volume expected in 6–8 months.

• Return on capital expected to exceed WACC by late 2027, with margin improvements starting in 2026.