Metair shares jump after record earnings

Metair Investments, a battery and vehicle component maker, has seen its shares jump over 7 per cent on the JSE following the announcement of record profits for the 2021 financial year. The company reported a 23 per cent increase in group revenue and a staggering 140 per cent jump in headline earnings to R682.5 million. Riaz Haffejee, CEO of Metair Investments, spoke to CNBC Africa about the company's outstanding performance and plans for continued growth despite facing global challenges. Haffejee highlighted the successful recovery in the automotive components sector, with expectations of stronger volume potential in 2022 driven by forecasts from OEM customers and domestic market recovery in South Africa. Additionally, the energy storage vertical, including battery sales in South Africa, Turkey, and Romania, has shown promising demand, indicating sustained growth moving forward. However, Haffejee also acknowledged the challenges posed by supply chain disruptions and semiconductor chip shortages, which are expected to persist in the first half of 2022. He expressed optimism for improvement in the supply chain situation by the end of the year, emphasizing the company's efforts to manage risks and enhance coordination with stakeholders to navigate these challenges effectively. Metair Investments has announced plans to relocate its lithium ion production line from Romania to Turkey, citing a better market and government incentives in Turkey as key factors driving the decision. The move is expected to bolster the company's operations and contribute to future growth prospects. Despite concerns about the ongoing conflict in Ukraine, which could potentially disrupt supply chains, Haffejee assured that the current impact on the business has been minimal, with close monitoring in place to address any potential risks. Regarding the company's operations in Turkey, Haffejee noted the unique market dynamics and the impact of economic volatility on business sentiment. With one-third of the company's business in Turkey focused on OEM and exports, the business model has demonstrated resilience against currency fluctuations and inflation. Haffejee highlighted the positive contributions of employees and customers in Turkey, emphasizing their professionalism and proactive approach in navigating market challenges. In conclusion, Metair Investments' stellar performance in 2021 reflects its resilient business strategy and proactive measures to address global challenges. With a strong focus on growth opportunities in the automotive components and energy storage sectors, the company remains optimistic about its outlook for the future.