Bowler Metcalfe flags improved profitability


Bowler Metcalfe flags improved profitability

Published Date: 2020-07-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

Bowler Metcalfe flags improved profitability

The plastics manufacturer says trading has been reasonable throughout the lockdown, with some beneficial procurement opportunities.

Bowler Metcalf will report a decline in annual earnings following the sale of its stake in cold drinks business SoftBev. However, the plastics manufacturer says profits from its remaining business grew over the past year despite the impact of Covid-19.

In a trading statement, the company said earnings per share (EPS) for the year to end-June would be between 56% and 62% lower than the 259.41c reported last year when it benefitted from the profit it made on the disposal of its stake in SoftBev to The Beverage Company in 2018. Headline EPS would be 14% to 32% higher than the 88.1% previously reported.

Following a strike in the plastics industry last year, Bowler Metcalfe said its trading results had been restored, with reasonable trading during the Covid-19 lockdown and some beneficial procurement opportunities over the year. Due to the challenges it faced in 2019, when it was also impacted by load shedding, write-offs, unrecoverable material price surges and a deflated order book, it reframed its cost base and announced plans to invest in the recapitalisation of its equipment and moulds to build specialised capacity in what it said was a changing market.

The group operates in the personal care, chemical and food packaging sectors.

Its shares fell 1.3% to R7.50 yesterday.

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