AECI generates 5.4% FY revenue
The explosives and chemicals group AECI's revenue jumped 5.4 per cent despite this the group reported a 12 per cent drop in full-year profit, weighed down by a high financing costs. Holger Riemensperger, CEO, AECI joins CNBC Africa’s Tania Habimana for more.
Wed, 28 Feb 2024 15:51:49 GMT
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AI Generated Summary
- AECI experienced a 5.4% increase in revenue driven by the stabilization of ammonia prices.
- The company's focus on EBITDA revealed a strong performance in their mining business despite challenges in the local chemical sector.
- AECI is committed to reducing debt levels and working capital to improve profitability and plans to lower its gearing ratio further in the future.
The explosives and chemicals group AECI recently announced a 5.4% increase in revenue, although the company also reported a 12% drop in full-year profit, primarily due to high financing costs. Holger Riemensperger, CEO of AECI, spoke with CNBC Africa's Tania Habimana to discuss the company's performance and future outlook. Riemensperger highlighted that the revenue growth was largely driven by the fluctuation in the price of their key raw material, ammonia, which has now stabilized. He pointed out that focusing on the company's EBITDA provides a clearer picture of their financial health. Despite the challenges posed by high financing costs, AECI managed to reduce debt levels and working capital in the second half of the year, demonstrating a commitment to financial stability and growth. Riemensperger shared that the company is aiming to further lower its gearing ratio from the current 35% to between 20% and 40% depending on market conditions.
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