COMPANY NEWS IN BRIEF

Sibanye-Stillwater offers ­strikers profit shareSibanye-Stillwater has offered striking workers a profit share of 5% in perpetuity in an attempt to settle the wage strike at its gold operation, now in its 12th week.

Union negotiators, who themselves are not in favour of the offer, are to report back to workers at mass meeting at Driefontein mine on Friday. The offer was made at a meeting between management and unions on Tuesday.

The parties are only R200 apart with Sibanye-Stillwater offering an R800 increase on the basic wage of R10 237 with the Association of Mineworkers and Construction Union (AMCU) and the National Union of Mineworkers (NUM) demanding R1 000.

With the gold price at current levels, the 5% profit share would effectively close the gap between the parties. However, should the gold price drop, so will the profit share due to workers.

The introduction of a profit share would be a rational change to the way the wages in mining are negotiated given its cyclical nature and dependence on metal prices for profitability. But unions, whose goal is to raise the level of the basic wage permanently in the gold sector, are not in favour of variable pay. -Fin24

Richemont declares special ­dividend

Richemont has reported a 46% increase in sales for the year to end-March, with its profit up 61% to €2.079 billion. The company declared a special dividend.

Its watchmakers – including Roger Dubuis, Cartier, IWC, and Jaeger-LeCoultre – reported 49% sales growth, with a 34.3% operating margin. “The increased appeal of high-quality watches to Millennials and Gen-Z is very positive for the future,” the company said in a statement.

Its jewellery business - Buccellati, Cartier and Van Cleef & Arpels – grew sales by 49%. Online sales grew by 27%.

The company posted a proposed dividend of 2.25 Swiss franc (R36.72), with a special dividend of CHF 1.00 (R16.32).

“This is a recognition of the excellent profits achieved over the year that we would like to share, not only with all Richemont colleagues through an exceptional reward payment, but also with Richemont’s loyal long-term shareholders. -Fin24

Investec profits exceed pre-­pandemic levelsAfter its customers bounced back quicker than the average, helping Investec grow its profits much higher than pre-pandemic levels, the banking group is walking into the gloomy environment of rising global inflation and sombre consumer confidence a bit more self-assured than some of its peers.

Investec didn’t stay in the solemn Covid-19 mood for very long. Even before the end of 2020, it was signalling that most of its clients had already gotten back on their feet and repaying their loans as they used to.

Presenting the banking group’s financial results for the year ended on 31 March, CEO Fani Titi, said this recovery accelerated even faster. Right now, Investec’s credit loss ratio is at a historical low of 8 basis points (bps). The South African business’s credit loss ratio is almost 0%, something the group has never experienced even before Covid-19.

Clients have been servicing their debts well, reducing Investec’s credit impairment charges. But the bank still retained a “fair amount” of Covid-19 provisions it previously raised because SA’s economy is still under pressure.

But Investec does expect the credit loss ratio for its South African business to “normalise” to around 25 – 30 bps. It is still much lower than what the company historically told investors to expect. Investec also expects credit ratio in the UK business to normalise at around 30 – 40 bps. -Fin24

Commission gives all-clear for Massmart’s saleSouth Africa’s competition authority has recommended that Massmart’s sale of Cambridge Food, Rhino and Massfresh to Shoprite for R1.36 billion be approved.

This forms part of the requisite regulatory approvals, with the Competition Commission recommending to the Competition Tribunal that the deal be approved, according to a market announcement on Friday.

Shoprite is buying the Cambridge Food business and Rhino Cash and Carry business (56 grocery stores, including 43 adjacent liquor stores); the Fruitspot business and Massfresh Meat business (four facilities); and 12 Masscash Cash and Carry stores.

Massmart will use the financial proceeds from the sale to pay down debt, invest in e-commerce, and expand its general merchandise, DIY and wholesale food and liquor businesses.

“The sale marks another step in the group’s portfolio optimisation process and will, amongst other benefits, free up management time to enable increased focus on leveraging Massmart’s core merchandise and market strengths,” CEO Mitch Slape said in August last year. -Fin24

Prosus looks to offload Russian businessNaspers subsidiary Prosus has announced it is looking for a buyer for its Russian online classifieds business Avito.

Avito is the world’s largest Russian-language online classifieds business, with upwards of 90 million active listings.

“On 25 March 2022, we announced the separation of the Russian classifieds business Avito from our OLX Group. Following completion of this operational separation, Naspers’s Prosus has now decided to exit the Russian business,” the group said in a statement on Friday.

“We have started the search for an appropriate buyer for our shares in Avito.”

Avito is one of two Russian businesses that Prosus has stakes in. While it outrights owns the popular classifieds group, it also has a 25.7% share in Russian internet company the VK Group.

Prosus, which houses Naspers’ internet assets, has already sought to distance itself from Avito following Russia’s invasion of Ukraine. -Fin24