Hulamin (HLM) H1 2025 earnings summary

Executive summary

• Revenue rose 8% year-over-year to R7.1 billion, driven by a 2% increase in rolled products volumes and a stronger sales mix, despite headwinds from exchange rates, energy costs, and local pricing pressure.

• Normalised EBITDA declined 20% to R282 million, and net profit for the period fell 85% to R43 million, impacted by metal price lag losses, higher interest costs, and restructuring expenses.

• Strategic milestones included completion of the wide canbody expansion project, final phase of growth capital plan, and decision to exit the Extrusions and Containers divisions by end-2025.

• Safety performance improved, with zero injuries during a major 25-day shutdown and LTIFR at 0.06, a 9% reduction year-over-year.

• Aggressive cost improvement and working capital management initiatives underway.

Financial highlights

• Revenue: R7.1 billion (up 8% year-over-year); normalised EBITDA: R282 million (down 20%); net profit: R43 million (down 85%).

• Normalised EBIT declined 24% to R215 million; normalised headline earnings were R80 million.

• Net debt increased to R1.59 billion, driven by expansion capex and higher interest costs; debt-to-equity ratio at 43%.

• Earnings per share (EPS) and headline EPS both at 14cps, down 84% year-over-year.

• Free cash flow: Outflow of R258 million.

Outlook and guidance

• Targeting annualised production above 200,000 tons by 2027, with wide canbody commercialisation expected in Q1 2026.

• Focus on aggressive cost reduction, increased scrap usage, and optimising plant productivity.

• Gearing targeted below 25%, with dividend resumption under review for the next two years.

• CBAM roadmap in place to protect EU exports; strong demand expected in core streams, but geopolitical risks persist.