COMPANY NEWS IN BRIEF
Absa profit jumps 30%
Absa reported its "strongest half yet" in the six months to June 2022. The bank, which has been trying to claw back market share it lost under Barclays' rule, posted a 30% growth in its headline earnings.
Its half-year dividend has more than doubled to 650c a share.
Absa's biggest business unit, the retail and business banking division (RBB), grew its headline earnings by 34% to R5.6 billion, contributing 57% of the group's earnings during this half. Absa's Corporate and Investment Bank grew its headline earnings by 5% to R4.28 billion.
Absa Group CEO, Arrie Rautenbach, said the bank continued to gain market share in targeted areas such as home loans. But it lost some of its primary banked clients, reducing that number to 2.7 million customers. These are people who deposit their salaries with Absa, and most of that loss was in the entry-level market. Rautenbach said the group has a strategy to grow its primary-banked client base again.
"While we have gained momentum with all middle market and affluent customers, we aim to grow our entry-level and inclusive banking base as well as youth and SMEs," said Rautenbach.
One area where Absa has been growing its market consistently in the past few years is lending. In the six months to the end of June 2022, the group grew its total loans and advances by 11%.-Fin24
Richemont urges shareholders to vote against Trapani
Richemont, the maker of Cartier jewellery, said shareholders should vote against the appointment of Francesco Trapani to the board because he is too closely associated with arch-rival LVMH.
In a ratcheting up of the battle between the luxury group and activist investor Bluebell Capital Partners, which proposed the appointment, Richemont said Trapani is an “inappropriate candidate” and his election is not in the interest of the company.
Richemont Chairman Johann Rupert controls the high-end group through its ‘B’-class shares. The South African billionaire holds 10% of the company’s share capital and 51% of its voting rights, according to the company’s most recent annual report. The ‘A’ shares are publicly traded and have a bigger economic interest but lower voting rights than Rupert.
Bluebell, which has a history of taking on large European companies, wants a representative for the ‘A’ shareholders and proposed ex-Bulgari Chief Executive Officer Trapani, who led the jewellery brand for nearly three decades until 2011. Trapani was also a founding partner of Bluebell in 2019.
Richemont said Monday that Bluebell, which has a relatively small stake, lacks the “legitimacy” to represent the ‘A’ shareholders.
The luxury group’s shares were little changed in early Swiss trading, and have fallen 17% this year. -Fin24
Samsung unveils new foldable smartphones
Samsung Electronics unveiled its latest high-end foldable smartphones, keeping prices at the same level as last year's in a bid to cement its leadership in an expanding niche market.
The smartphone maker priced its clamshell Galaxy Z Flip4 at US$999.99, and the 5G-enabled top-line Galaxy Z Fold4 with a 7.6-inch (19.3cm) main screen to start at US$1,799.99 in the United States, the same as the launch prices of last year's models.
Although the overall smartphone market is seen shrinking this year as consumers spend less, foldable smartphones are likely to fare better, as their quirky form factor, large screens and portability attract interest, analysts said.
Samsung held a 62% market share in foldable smartphones in the first half of 2022, followed by Huawei at 16% and Oppo at 3%. Research firm Counterpoint forecast Samsung's share in the second half will be around 80% after the new releases. -Reuters
Seriti buys stake in wind and solar firm
Major Eskom coal supplier Seriti Resources has acquired a controlling stake in renewable energy company Windlab Africa for R892 million.
The deal gives Seriti a 51% stake in the wind and solar power company, which is currently overseeing 3.5 GWs of renewable energy projects at different stages of development in South Africa and east Africa. Windlab Africa consists of all of Windlab South Africa’s operations, and 75% of Windlab East Africa.
"The acquisition is a timely and strategic addition to our existing and valuable portfolio of coal assets. Our commitment to the responsible and reliable production of coal for both domestic consumption and exports remains unwavering," Seriti CEO Mike Teke said in a statement.
"This acquisition is a significant landmark on Seriti’s journey to becoming a diversified energy business and supports our ESG [Environmental, Social, and Governance] objectives and commitment to a just energy transition."
Seriti is partnering with Standard Bank, who will have a 14.5% stake, as well as RMB, also with 14.5%, Ntiso Investment Holdings 5% and Windlab managing director Peter Venn with 15%.
The company said the acquisition was "timely", given the "challenges currently facing Eskom, and as a result the country as a whole”. -Fin24
Thungela returns R8.2 billion to shareholders
Thungela Resources has declared an interim dividend of R8.2 billion, or R60 per share, following a record half year in which profit rocketed on the back of strong export coal prices.
The coal miner, which was spun out of Anglo American in June last year, reported profit of R9.6 billion compared with R351 million in the first half of 2021.
The dividend represents a pay-out of 92% of adjusted operating free cash flow, and is substantially higher than the minimum pay-out ratio of 30% per our stated dividend policy.
Considering the increase in the share price – 460% in the past year - together with the 2021 final and 2022 interim dividends, Thungela has generated a total shareholder return of 1 138% since listing through to the end of June 2022.
July Ndlovu, Thungela CEO said the first half had seen "good progress on a number of fronts", including the delivery of " another set of exceptional financial results driven by elevated benchmark coal prices in a volatile operating environment".
Demand for affordable energy sources such as thermal coal escalated amid the energy security crisis which was exacerbated by the escalation of the Russia-Ukraine conflict. Coupled with supply constraints in major coal producing regions, this resulted in the price of thermal coal increasing to unprecedented levels, Thungela said. -Fin24
MTN respond to trade union
MTN says a statement by trade union Solidarity citing retrenchments at the mobile network operator are callous "fear-mongering". It said it would continue with its digital transformation strategy, which will result in 450 new jobs.
The telecoms giant found itself in the crosshairs of Solidarity after it served its employees with section 189 notices last week.
In a statement on its website on Friday, the union lashed out at MTN for planning a "retrenchment process" describing it as a callous and immoral move, given its strong financial performance.
Solidarity also slammed the timing of MTN's announcement, saying with inflation and fuel price increases, people are already struggling to stay afloat.
"Solidarity believes it is difficult to see these retrenchments through a lens other than one coloured by MTN’s intended takeover of Telkom," it said.
But the mobile operator has defended the notice, saying it served as a formal notice of its transformation process, which began in 2020. The 450 new jobs will be in digital, technology, financial technology and wholesale.
MTN's corporate affairs executive Jacqui O'Sullivan explained that the notice was a legal requirement to inform employees of the transformation process and that it will affect some roles. -Fin24
Spur to report jump in sales
The Spur Corporation has managed to achieve a strong performance for the year, despite the impact of tough economic conditions on consumers.
In its trading update for the year ended 30 June 2022, Spur said sales for its restaurant franchises grew by 28% compared to 2021.
Local restaurant sales grew by 24.5% in the second half of 2022, whole international restaurant sales increased 25% during the second half of 2021.
In addition to the Spur restaurant chain, the group also owns the Panarottis, John Dory's and RocoMamas brands.
"Although economic conditions remain challenging in the face of higher inflation and severe pressure on consumer disposable income, the group’s business model continues to demonstrate its resilience," Spur said on Monday.
The restaurant chain owner's strategy has been focused on value and convenience, which includes click and collect, deliveries and takeaways.
This year, the group opened its first RocoMamas drive through after launching the first Spur drive through in 2021.-Fin24
Absa reported its "strongest half yet" in the six months to June 2022. The bank, which has been trying to claw back market share it lost under Barclays' rule, posted a 30% growth in its headline earnings.
Its half-year dividend has more than doubled to 650c a share.
Absa's biggest business unit, the retail and business banking division (RBB), grew its headline earnings by 34% to R5.6 billion, contributing 57% of the group's earnings during this half. Absa's Corporate and Investment Bank grew its headline earnings by 5% to R4.28 billion.
Absa Group CEO, Arrie Rautenbach, said the bank continued to gain market share in targeted areas such as home loans. But it lost some of its primary banked clients, reducing that number to 2.7 million customers. These are people who deposit their salaries with Absa, and most of that loss was in the entry-level market. Rautenbach said the group has a strategy to grow its primary-banked client base again.
"While we have gained momentum with all middle market and affluent customers, we aim to grow our entry-level and inclusive banking base as well as youth and SMEs," said Rautenbach.
One area where Absa has been growing its market consistently in the past few years is lending. In the six months to the end of June 2022, the group grew its total loans and advances by 11%.-Fin24
Richemont urges shareholders to vote against Trapani
Richemont, the maker of Cartier jewellery, said shareholders should vote against the appointment of Francesco Trapani to the board because he is too closely associated with arch-rival LVMH.
In a ratcheting up of the battle between the luxury group and activist investor Bluebell Capital Partners, which proposed the appointment, Richemont said Trapani is an “inappropriate candidate” and his election is not in the interest of the company.
Richemont Chairman Johann Rupert controls the high-end group through its ‘B’-class shares. The South African billionaire holds 10% of the company’s share capital and 51% of its voting rights, according to the company’s most recent annual report. The ‘A’ shares are publicly traded and have a bigger economic interest but lower voting rights than Rupert.
Bluebell, which has a history of taking on large European companies, wants a representative for the ‘A’ shareholders and proposed ex-Bulgari Chief Executive Officer Trapani, who led the jewellery brand for nearly three decades until 2011. Trapani was also a founding partner of Bluebell in 2019.
Richemont said Monday that Bluebell, which has a relatively small stake, lacks the “legitimacy” to represent the ‘A’ shareholders.
The luxury group’s shares were little changed in early Swiss trading, and have fallen 17% this year. -Fin24
Samsung unveils new foldable smartphones
Samsung Electronics unveiled its latest high-end foldable smartphones, keeping prices at the same level as last year's in a bid to cement its leadership in an expanding niche market.
The smartphone maker priced its clamshell Galaxy Z Flip4 at US$999.99, and the 5G-enabled top-line Galaxy Z Fold4 with a 7.6-inch (19.3cm) main screen to start at US$1,799.99 in the United States, the same as the launch prices of last year's models.
Although the overall smartphone market is seen shrinking this year as consumers spend less, foldable smartphones are likely to fare better, as their quirky form factor, large screens and portability attract interest, analysts said.
Samsung held a 62% market share in foldable smartphones in the first half of 2022, followed by Huawei at 16% and Oppo at 3%. Research firm Counterpoint forecast Samsung's share in the second half will be around 80% after the new releases. -Reuters
Seriti buys stake in wind and solar firm
Major Eskom coal supplier Seriti Resources has acquired a controlling stake in renewable energy company Windlab Africa for R892 million.
The deal gives Seriti a 51% stake in the wind and solar power company, which is currently overseeing 3.5 GWs of renewable energy projects at different stages of development in South Africa and east Africa. Windlab Africa consists of all of Windlab South Africa’s operations, and 75% of Windlab East Africa.
"The acquisition is a timely and strategic addition to our existing and valuable portfolio of coal assets. Our commitment to the responsible and reliable production of coal for both domestic consumption and exports remains unwavering," Seriti CEO Mike Teke said in a statement.
"This acquisition is a significant landmark on Seriti’s journey to becoming a diversified energy business and supports our ESG [Environmental, Social, and Governance] objectives and commitment to a just energy transition."
Seriti is partnering with Standard Bank, who will have a 14.5% stake, as well as RMB, also with 14.5%, Ntiso Investment Holdings 5% and Windlab managing director Peter Venn with 15%.
The company said the acquisition was "timely", given the "challenges currently facing Eskom, and as a result the country as a whole”. -Fin24
Thungela returns R8.2 billion to shareholders
Thungela Resources has declared an interim dividend of R8.2 billion, or R60 per share, following a record half year in which profit rocketed on the back of strong export coal prices.
The coal miner, which was spun out of Anglo American in June last year, reported profit of R9.6 billion compared with R351 million in the first half of 2021.
The dividend represents a pay-out of 92% of adjusted operating free cash flow, and is substantially higher than the minimum pay-out ratio of 30% per our stated dividend policy.
Considering the increase in the share price – 460% in the past year - together with the 2021 final and 2022 interim dividends, Thungela has generated a total shareholder return of 1 138% since listing through to the end of June 2022.
July Ndlovu, Thungela CEO said the first half had seen "good progress on a number of fronts", including the delivery of " another set of exceptional financial results driven by elevated benchmark coal prices in a volatile operating environment".
Demand for affordable energy sources such as thermal coal escalated amid the energy security crisis which was exacerbated by the escalation of the Russia-Ukraine conflict. Coupled with supply constraints in major coal producing regions, this resulted in the price of thermal coal increasing to unprecedented levels, Thungela said. -Fin24
MTN respond to trade union
MTN says a statement by trade union Solidarity citing retrenchments at the mobile network operator are callous "fear-mongering". It said it would continue with its digital transformation strategy, which will result in 450 new jobs.
The telecoms giant found itself in the crosshairs of Solidarity after it served its employees with section 189 notices last week.
In a statement on its website on Friday, the union lashed out at MTN for planning a "retrenchment process" describing it as a callous and immoral move, given its strong financial performance.
Solidarity also slammed the timing of MTN's announcement, saying with inflation and fuel price increases, people are already struggling to stay afloat.
"Solidarity believes it is difficult to see these retrenchments through a lens other than one coloured by MTN’s intended takeover of Telkom," it said.
But the mobile operator has defended the notice, saying it served as a formal notice of its transformation process, which began in 2020. The 450 new jobs will be in digital, technology, financial technology and wholesale.
MTN's corporate affairs executive Jacqui O'Sullivan explained that the notice was a legal requirement to inform employees of the transformation process and that it will affect some roles. -Fin24
Spur to report jump in sales
The Spur Corporation has managed to achieve a strong performance for the year, despite the impact of tough economic conditions on consumers.
In its trading update for the year ended 30 June 2022, Spur said sales for its restaurant franchises grew by 28% compared to 2021.
Local restaurant sales grew by 24.5% in the second half of 2022, whole international restaurant sales increased 25% during the second half of 2021.
In addition to the Spur restaurant chain, the group also owns the Panarottis, John Dory's and RocoMamas brands.
"Although economic conditions remain challenging in the face of higher inflation and severe pressure on consumer disposable income, the group’s business model continues to demonstrate its resilience," Spur said on Monday.
The restaurant chain owner's strategy has been focused on value and convenience, which includes click and collect, deliveries and takeaways.
This year, the group opened its first RocoMamas drive through after launching the first Spur drive through in 2021.-Fin24
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