Imperial Logistics earnings slip
CAPE TOWN - Imperial Logistics, which unbundled motor group Motus in November, said headline earnings per share of continuing operations fell 7 percent to 542 cents in the year to June 30.
Revenue was up 6 percent to R49.7 billion. Operating profit of continuing operations was down 9 percent to R2.5bn. A final dividend of 109c per share was declared, compared with 224c in 2018.
Imperial Logistics provides outsourced freight management, contract logistics and distributorships in Africa and Europe, with a focus on five industries - automotive, chemicals, consumer, healthcare and industrial.
The results were supported by a good performance from African Regions, management said in a statement on Tuesday.
This was offset by weaker operational performances, once-off trading costs of €4 million (R65m) in International, and once-off costs relating to rationalisation and restructuring in the South African and International operations of R170m.
Excluding the once-off costs, operating profit for continuing operations decreased by 1 percent. Balance sheet management remained sound with sufficient headroom for strategic growth, management said.
A decision was made to exit the consumer packaged goods (CPG) business in South Africa due to an unviable business model, which resulted in an impairment of assets including goodwill of R590m and provisions for closure costs of R850m post-tax.
Some R385m of fixed overhead cost savings in the South Africa and International divisions would be realised in the 2020 financial year.
The impairment of certain historic goodwill of 1,1bn from total goodwill and intangible assets; was driven by deterioration in macroeconomic conditions in all three divisions.