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Industrial and consumer group Barloworld has upped its dividend by over a fifth for its half-year to end March, saying it’s pleased with the progress made in narrowing its strategic focus, while remaining encouraged by its healthy order book.
The group reported almost 13 percent growth in continuing revenue to R20,8 billion in its half year, boosted by equipment demand in Mongolia and southern Africa as supply chain pressures eased, with the company upping its interim dividend by 21 percent to R2 per share.
During the period Barloworld unbundled its shares in Zeda, the car rental and leasing business which listed on the JSE in December, and sold off the logistics business. This helped streamline Barloworld operations to focus on its core businesses.
Valued at about R16 billion on the JSE, Barloworld has two major divisions, its equipment and services business, which deals in items such as earthmoving equipment and power systems, and its consumer industries division. Consumer industries is Tongaat Hulett’s former starch business, now called Ingrain, provides ingredients used by customers in the production of food and beverages, adhesives and paper, among other things.
The equipment division in southern Africa was a major contributor to the growth, with a 38,4 percent increase jump in revenue as mining activity and replacement of vehicle fleets increased.
Equipment Mongolia was the star performer, however, with about 52 percent revenue increase, boosted by the resumption of trade and increased sales of equipment following the opening of its border with China. In early 2023, the world’s second-largest economy abandoned its zero-Covid stance.
There was pressure, however, in its Russian equipment business, with that country hit by Western sanctions, with its operating profits falling about a quarter, although profit margins increased in line with demand for after-market parts. — News24
Online Reporter