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.

• Achieved zero injuries during a major 25-day integrated shutdown, maintaining a declining incident frequency rate over five years.

• Local market share increased by 1%; strategic milestones included completion and commissioning of the wide canbody expansion project and effective working capital management.

• Ceased trading in the containers division in June 2025 and classified the extrusion business as a discontinued operation, with exit planned by year-end and asset wind-down and sale underway.

Financial highlights

• Normalized EBITDA was R282 million, down 20% year-over-year, impacted by currency, pricing pressures, and restructuring expenses.

• Revenue increased 8% year-over-year to R7.1 billion, but normalized EBIT declined 24%.

• Net profit for the period fell 85% to R43 million.

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

• Normalized headline earnings for the period were R80 million; normalized HEPS 26cps (down 48%).

Outlook and guidance

• Annualized production for 2025 forecast at 175,000–180,000 tons; target to exceed 200,000 tons by 2027, with 60% in the can stream.

• Commercialization of wide can body project expected in Q1 2026, aiming for 85% market share and qualifying wide-width products for commercial readiness.

• Aggressive cost reduction, increased scrap usage, and focus on optimizing plant productivity to drive margin improvement and sustainability.

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

• Immediate priorities include maintaining a competitive cost base and reducing net debt; strong demand expected in core streams, but geopolitical risks remain.