METAIR POSTS GOOD HALF-YEAR
RESULTS SUPPORTED BY
EXCELLENT CONTRIBUTION FROM
MUTLU AKÜ
Metair has announced good interim results for the half
year ended 30 June 2014, buoyed by the inclusion of its
Turkish acquisition for the full period.
These interim results include the first contribution from
Mutlu Group (Mutlu) for a full period. Acquired by Metair
in December 2013 for R2.9 billion, Mutlu includes Mutlu
Akü, the leading lead-acid battery manufacturer and
distributor in Turkey and the Middle East.
Mutlu Akü delivered an outstanding first half performance
supported by lower hard currency debt levels, excellent
cost management and a drive to leverage group
synergies.
Theo Loock, Metair’s managing director commented:
“Mutlu Akü, our Turkish based battery manufacturing
business, delivered an outstanding first half performance
which supported the Group’s overall results.
The integration of Mutlu Akü is progressing according
to plan and remains a key pillar of Metair’s strategy
to derive 50% of business from Original Equipment
Manufacturers, 50% from the Aftermarket and 50% of
overall business from batteries.”
During the reporting period the group increased its
shareholding in Mutlu Akü from 75% to 96.7% and in
July Metair initiated the minority squeeze-out process
to increase its shareholding to 100% and delist the
company from the Istanbul stock exchange.
Group revenue increased 32% to R3 235 million
(H1 2013: R2 460 million) and operating profit
commensurately improved by 16% to R319 million
(H1 2013: R274 million). Profit after tax increased to
R251 million (H1 2013: R229 million).
Cash generated from operations remained very healthy
and increased 48% to R335 million.
Contribution from the Group’s OEM businesses was
disappointing due to a number of factors which
contributed to the decline in production volumes during
the first half of 2014 including the launch of new models
by vehicle manufacturers to meet the latest carbon
emission standards due in 2016.
Loock continued “The performance from the
Original Equipment manufacturing (OEM) segment
was disappointing as continued labour disruptions
destabilise the manufacturing environment.”
Aftermarket demand for Metair’s products varied across
regions and export markets during the period with
demand in South Africa remaining strong whilst Turkey
and Romania were softer after an abnormally warm
winter period.