Reunert (RLO) CMD 2025 summary

Key objectives and strategic focus

• Emphasis on highly capable management teams and expertise across business units.

• Focus on capital-intensive assets and operational capabilities in South Africa and Zambia.

• Clear strategies for sustainable growth, including internationalization, renewable energy, and digital integration.

• Commitment to strong governance, risk management, and ethical business practices.

• Enhancing shareholder returns through dividends, share buybacks, and strategic investments.

Financial performance and business contribution

• Electrical engineering segment contributed 52% of group revenue and 43% of operating profit in 2024, up from 38% in 2023.

• Segment achieved a 4-year revenue CAGR of over 11%, reaching ZAR 7.7 billion, and a 21% CAGR in profit before interest and tax.

• Export and international business now represent 38% of segment revenue, up from 31% the previous year.

• Group maintains strong free cash flow, converting EBITDA to free cash flow at about 65%.

• Market cap and revenue both around ZAR 15 billion at the end of last year, with operating profit at ZAR 1.5 billion.

Segment overviews and business models

• Three main business units: African Cables (power cables), Zamefa (copper rods and cables), and Low Voltage (circuit protection and smart devices).

• Vertically integrated manufacturing and global reach, with facilities in South Africa, Zambia, Lesotho, Australia, and the USA.

• Business models emphasize technical expertise, innovation, and rapid product development for local and export markets.

• Business units are recognized for technical support, full value chain services, and strong customer partnerships.

• Integrated supply chain and local sourcing of copper provide resilience against global disruptions.