Afrimat posts strong FY17 results

Local industrial minerals and construction materials company Afrimat on Thursday reported a 25.4% increase in headline earnings a share to 196.4c for the year ended February 28, resulting from a strong performance by its mineral producing operations.

The group also achieved an increase in its operating margin, from 16.3% to 18.2%, while its cash generated from operations improved from R320-million to R406-million.

At a media briefing in Johannesburg, CEO Andries van Heerden noted that the addition of Cape Lime to its portfolio in the last year added 8% to Afrimat’s operating profit.

He noted that the company was also engaged in new marketing initiatives to find more markets for its products.

He further pointed out that Afrimat’s traditional business of aggregates and concrete saw a 12% improvement in operating profit, up from 32% last year to 44% this year – bolstered by “good economics” in the Western Cape, including infrastructure building.

“The Western Cape economy is very healthy at the moment,” said Van Heerden, adding that efficiency improvements also contributed to its growth.

Looking ahead, Van Heerden highlighted that the group was well-positioned to capitalise on its strategic initiatives and forecast continued growth from an “excellent” asset base.