COMPANY NEWES IN BRIEF

AngloGold to move primary listing out of SAMarking its further divestment from the country in which it was founded, AngloGold Ashanti has announced a plan to shift its corporate domicile and primary listing away from South Africa. Having disposed of its remaining South African operating assets in 2020, the miner said it has undertaken a comprehensive review of its domicile and listing structure and concluded that the most appropriate corporate structure for the group is a UK corporate domicile with a US primary listing on the New York Stock Exchange.The company said it has a long standing and growing presence in the US and no longer has operating assets in South Africa.But it will hold secondary listings on the Johannesburg Stock Exchange and A2X Markets in South Africa and on the Ghana Stock Exchange.Alberto Calderon, AngloGold Ashanti’s CEO, says 40% of the group's shareholders are still South African so this is a "fit-for-purpose structure".The shift out of South Africa is subject to shareholder approval, but is expected to conclude in September this year."This is a logical progression for AngloGold Ashanti, which is well aligned with the evolution of the business in recent years and will assist in unlocking value in a way that’s minimally disruptive for our stakeholders," said Maria Ramos, AngloGold Ashanti’s Chairperson.-Fin24MTN reports 11% profit growthAfrica's largest mobile operator MTN said while robust demand for data helped lift its revenue by double digits in its first quarter to end-March, profit margins came under strain as it battled with load shedding in South Africa and high inflation across its markets.MTN, which generates more than 60% of its revenue in Nigeria and SA alone, reported revenue growth of more than 15% to R52.8 billion for its three months to end-March, with data usage jumping by more than a quarter. Core profit grew 11% to over R24 billion but fell almost 7% in SA.The group's core profit margin fell 2.7 percentage points year on year to 43.7%. Margins fell 3.8% in its second-biggest market SA, where it is investing to help offset the effects of load shedding, though higher management fees also had an effect. MTN said its busy upgrading and equipping its cellphone towers with batteries and piloting solar at a limited number of sites, as well as spending more on security. The company is also investing on its rollout of its network in Nigeria, and difficult trading conditions across its markets as local currencies weakened against the dollar.Inflation averaged more than more 18% across its markets, with higher interest rates and general prices eroding the spending power of customers. Both Sudan and Iran are suffering hyperinflation, with Sudan having now been hit by a conflict in mid-April that has led to a shortage of basic goods. In Nigeria, companies have also been hit by the introduction of a new currency, which has led to a shortage of notes, suppressing economic activity.-Fin24Sappi hit by production slump in SAPaper and packaging group Sappi said its profits fell almost two thirds in its second quarter, after it was hit by production issues in South Africa as well as weaker demand for key products.Heavy rains and challenges associated with the recent of the containerboard machine at its Ngodwana mill in Mpumalanga added to pressure from customers destocking inventory and a slowing global economy, it said. Sales for graphic papers and packaging were down 42% and 29% respectively.Group profit in the second quarter fell 63% to US$69 million (about R1.3 billion) year-on-year, it said, though net debt fell almost a third to US$1.22 billion, and its net asset value grew 7%.Sappi, valued at about R23 billion on the JSE, generates only about 8% of its sales in SA, but the country accounts for more than half of its operating assets by value, and more than a third of its workforce.The group said that following its record profitability achieved last year, it faced a severe downstream inventory destocking cycle. This led to production curtailment in both the European and North American regions to match the sluggish market demand and to prevent excess inventory accumulation.Profitability was negatively affected by reduced sales volumes, cost inflation and operational inefficiencies associated with the commercial downtime. However, paper selling prices remained relatively stable through the quarter and were significantly above the levels in the prior year, it said.-Fin24TFG reports robust growthFoschini owner TFG has estimated load shedding cost its local business R1.5 billion in lost sales in its year to end-March, further estimating a cost of 730 000 trading hours as customers stayed away from stores due the inconvenience of the blackouts.TFG, valued at almost R30 billion on the JSE, said however it still delivered a robust performance in tough conditions, gaining market share and growing retail turnover by just over 19% in its 2023 year.This was driven by a more than doubling in homeware and furniture sales in its second half, the group said, with clothing sales climbing almost 12%, while cosmetic sales dipped 0.6%, and jewellery 3.6%.TFG said that it continues to invest in alternative power solutions, including battery backup power, which had partially mitigated the effect of recent load shedding.As of the end of March, 1 875 stores had backup power, representing about 75% of its retail turnover in TFG Africa, with plans to ensure the majority of key stores had back up within the next few months.-Fin24

COMPANY NEWES IN BRIEF

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