Hulamin CEO on the disruption to manufacturing amid COVID-19
Aluminium supplier and exporter, Hulamin has reported a decrease of 35 per cent in sale volumes for its interim period, as a consequence of the COVID-19 crisis. The group also a reported an interim loss of 53.1 per cent which included the costs related to the closure of its Olifantsfontien plant. Hulamin CEO, Richard Jacob joins CNBC Africa for more.
Mon, 21 Sep 2020 10:53:10 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The impact of the COVID-19 crisis on Hulamin's sales volumes and interim loss
- The company's strategies for cost-cutting, hedging, and profitability amidst market uncertainties
- The outlook for Hulamin's core products and the focus on sustainable growth and efficiency measures
Aluminium supplier and exporter, Hulamin, has faced a challenging interim period due to the impact of the COVID-19 crisis. The company reported a 35% decrease in sales volumes and an interim loss of 53.1%, which included costs related to the closure of its Olifantsfontein plant. Despite these challenges, Hulamin CEO, Richard Jacob, remains optimistic about the future of the business. In an interview with CNBC Africa, Jacob discussed the company's cost-cutting measures, hedging losses, and strategies for profitability moving forward. One key point of discussion was the impact of the lockdown on Hulamin's business, particularly in relation to the production of beverage cans for the alcohol packaging industry. Jacob emphasized the strong demand for beverage can material in global markets, indicating a positive outlook for the company's core products. Additionally, Jacob addressed the company's hedging strategy, noting the decision to halt metal pool hedging temporarily to assess market stability. The CEO highlighted the benefits of cost-cutting measures implemented in 2019, which have positioned the company to weather the challenges brought about by the pandemic. Sustainable cost savings and a strong balance sheet have helped Hulamin navigate the uncertain economic environment. Looking ahead, Jacob discussed potential areas for further cost reductions, including energy efficiency improvements and maintenance cost savings. Jacob also addressed the issue of working through the December holiday period, noting Hulamin's history of operating through the festive season to meet demand. With profitability in focus for the second half of the financial year, Jacob expressed confidence in the gradual recovery of volumes and improved cost structure to support a return to profitability. Overall, the CEO's insights shed light on Hulamin's resilience amid industry disruptions and strategic initiatives to drive future growth and profitability.