Hulamin H1 HEPS slump 28%

Hulamin, a leading aluminum group, faced a significant drop in its share price, plummeting more than 13% following the release of its 2024 results. The company reported a 28% decline in basic headline earnings per share to 64c, with revenue slipping by 1% to R13.6 billion for the year ending in December. The decline was attributed to operational challenges, including a fire at one of its plants that impacted demand. CNBC Africa interviewed Mark Gounder, the CEO of Hulamin, to shed light on the results and the company's strategy for the future. Gounder highlighted the impact of the fire, breakdowns experienced throughout the year, and the company's commitment to its existing strategy focused on growing the local market. The CEO emphasized the company's resolve to continue growing its local market despite the disappointing financial performance in 2024. Gounder mentioned key highlights from the past year, such as record production and sales of can body products, continuous improvement initiatives driving record plate production, and progress in displacing imports into South Africa. With a clear roadmap in place, Hulamin aims to enhance its market share in the local aluminum sector, targeting growth from 52,000 to 63,000 tonnes in 2026 and reaching around 80% of the local market by 2027. One of the significant factors driving demand for Hulamin's products is the booming can market in South Africa. With its focus on sustainability and recyclability, aluminum cans have seen increasing demand, especially in the energy drink market. The company has invested in enhancing its used beverage can capitalization, aiming to increase production volumes to meet the rising market demand. Gounder expressed confidence in the continued growth of the can market and the positive outlook for Hulamin's products in the coming years. Despite external challenges, including geopolitical uncertainties and tariff wars, Hulamin remains committed to its strategy of focusing on the local market. Gounder explained how the company's pivot to prioritize local sales has reduced its exposure to risks associated with global trade tensions, particularly in light of recent tariffs imposed on aluminum and steel imports. With a strategic approach to its U.S. market sales, Hulamin aims to leverage market dynamics and maintain its competitive position. Looking ahead, Gounder highlighted the opportunities for Hulamin beyond the canned market, particularly in the auto industry. With potential infrastructure investments and developments in the automotive sector, the company sees opportunities to expand its product range and cater to new market demands. Gounder emphasized the importance of clear milestones and value creation for shareholders, setting ambitious targets for the company's growth and profitability by 2027. As Hulamin navigates the challenges in the aluminum sector and confronts operational hurdles, the company's focus on local market growth, strategic investments, and sustainable practices will be pivotal in driving its future success. With a resilient roadmap and a commitment to value creation, Hulamin aims to emerge stronger and more competitive in the evolving landscape of the aluminum industry.