Nu-World grows earnings in tough market


Nu-World grows earnings in tough market

Published Date: 2019-04-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

Nu-World grows earnings in tough market

The consumer electronics and liquor group has maintained market share by introduction more brands and new models of electronic goods.

Nu-World has managed to grow sales and earnings despite an environment in which consumers are less likely to buy the kettles, toasters and other electrical appliances that are imported, made and assembled by the group. It's also managed to strengthen its balance sheet after generating R305 million from its operations in the six months to end-February.

The company said while its SA operations showed marginal top-line growth, improved operating margins and a lower interest bill resulted in stronger bottom-line growth for the period. It managed to maintain market share in the consumer electronics market as it introduced additional brands and new models with state-of-the-art features. Sales at its liquor division were also steady.

Within its offshore operations, Australia grew sales and profitability strongly due to an expanded distribution network, including e-commerce options. Results from its other offshore operations were boosted by a weaker rand over the period.

Revenue rose 2.3% to R1.72 billion. Headline earnings increased by 10.5% to R94.1 million and headline earnings per share improved by 9.1% to 435.2c. It said group borrowings fell to R284 million due to its strong cash generation.

Its shares rose 7.6% to R45.20 in thin trade.

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