KAP (KAP) Trading update summary

Operating environment and group performance

• Revenue remained stable, while EBITDA, operating profit, and earnings increased despite challenging conditions marked by subdued demand, global oversupply, and geopolitical uncertainty.

• Increased panel production, higher vehicle assembly volumes, improved underperforming businesses, and lower net finance costs drove performance.

• Recent Middle East conflict and supply chain disruptions led to higher polymer prices, benefiting some divisions but adding uncertainty.

• Management is focused on operational efficiencies, cost savings, and value-added sales, while executing on strategic objectives.

Divisional operational performance

• PG Bison achieved higher sales and operating profit due to increased MDF production and market development.

• Safripol faced subdued demand and pricing but saw improved results late in the period due to supply disruptions and higher prices.

• Unitrans' revenue declined moderately, but operating profit rose due to cost savings and efficiency gains.

• Feltex saw higher revenue and profit from increased vehicle assembly and resolved prior operational constraints.

• Sleep Group's revenue rose slightly, but operating profit fell due to weaker bedding sales and higher marketing costs.

• Optix grew subscriptions but had lower hardware sales, leading to a moderate revenue decline and increased operating loss.

Strategy execution and leadership changes

• Major capital projects, especially PG Bison's MDF line, are expected to drive future growth, with further upgrades planned.

• Management targets R700 million annual operating profit for Unitrans and a R500 million net debt reduction in FY26.

• Leadership changes include new CEO Frans Olivier (from Nov 2025) and CFO Dries Ferreira (from Feb 2026).