Novus Holdings (NVS) H1 2026 earnings summary

Executive summary

• Revenue increased 1% year-over-year to R2,109 million, but operating profit and EBITDA declined sharply due to lower Education segment performance and higher operating expenses.

• Print, Publishing & Distribution segment outperformed prior period, with revenue up 23.2% to R1,640 million and improved margins, aided by earlier DBE orders and operational efficiencies.

• Education segment shifted from profit to loss, with revenue down 64.9% to R156.9 million, mainly due to delayed government orders and budget constraints.

• Packaging segment saw a slight decline, prioritizing margin retention over volume, with revenue down 6.2% to R345.4 million.

• Tangible net asset value per share increased by 4.7% to 586.05 cents, and net asset value per share rose to 679.08 cents.

Financial highlights

• Gross profit margin improved to 31.2%–31.4% from the prior year, as paper pricing pressures eased.

• Operating profit dropped 48% to R103 million, with operating margin at 4.9% versus 9.4% last year.

• Earnings per share and headline earnings per share both fell to 26.5–26.6 cents.

• Cash balance at period end was R741.7–742 million, with an additional ZAR 400 million expected in December.

• Dividend of 55 cents per share declared for the period.

Outlook and guidance

• Full-year performance expected to be slightly below last year due to lower DBE workbook volumes and reduced education orders.

• Margin improvements in print expected to be sustained; education segment to recover to about 75% of prior year levels.

• Print volumes expected to decline further, with anticipated paper price increases pressuring margins.

• Uncertainty remains around timing and scale of government curriculum changes and related procurement.

• Focus on developing AI-supported tools for education and investing in niche print technology.