Pietermaritzburg, South Africa – Hulamin Ltd., the Johannesburg-listed aluminum producer, reported a significant decline in its first-half earnings, prompting a strategic restructuring to focus on its core business. The company’s financial results for the six months ended June 30 show that rising energy costs, a stronger rand, and heightened competition have squeezed profitability.
The company’s normalized headline earnings per share (HEPS) nearly halved, falling to 26 cents from 50 cents in the same period a year earlier. This decline, despite a slight increase in sales volumes, indicates a sharp drop in profitability per unit sold.
Hulamin’s overall performance swung from a profit to a loss, with the company reporting a basic loss of 8 cents a share, a stark contrast to the 83-cent profit it recorded previously. Operating profit also plunged by 64% year-on-year to R165 million. In response, the company did not declare a dividend for the period.
In a bid to restore financial health, Hulamin is aggressively reshaping its portfolio. The company completed a wide canbody expansion project, which is set to boost local production and reduce reliance on imports. Commercial rollout of these new products is expected in early 2026.
Simultaneously, the company is divesting from underperforming divisions. It shut down its Hulamin Containers operations in June and has begun winding down and selling off its assets. Additionally, plans are underway to exit the Extrusions division, with disposal negotiations expected to be finalized by the end of the year.
Management’s immediate priority is to cut costs, reduce debt, and boost sales in the second half of the year. By concentrating on its core rolled products, Hulamin aims to achieve a stronger and more sustainable performance in the long term.
