Company news in brief

Anglo American cuts interim dividend

Anglo American, one of the world's largest miners, has declared a US$1.5 billion (about R25 billion) interim dividend, down from US$2.1 billion declared in June last year as commodity prices softened.

In the six months ended in June, the group's underlying earnings were US$3.8 billion, down from US$5.3 billion previously, while operating profit was US$6.7 billion as compared with US$11.0 billion.

Net debt of US$4.9 billion is an increase from US$3.8 billion at the end of 2021 and reflects the cash generation of the business, partially offset by investments in existing assets and future growth, Anglo said.

The interim dividend equates to US$1.24 per share and is consistent with the group's 40% pay out policy.

Average market prices for the group’s basket of products decreased by 2% compared with the first half of 2021. Realised prices for iron ore decreased by 36%, copper by 13% and the Platinum Group Metals basket declined by 7%. This was partly offset by steelmaking coal prices where the weighted average price increased by a whopping 245%. – Fin24

Woolworths sales growth wilts

Australian department store group David Jones continues to be a drag on Woolworths' performance, with a sales decline of 2.6% for the year to 26 June 2022.

In South Africa, sales at Woolworth's food business grew by 4.2%, the company announced in a trading statement. As the pandemic subsided, more people were eating out, while low price hikes in some products also weighed on sales growth.

But Woolworths Food saw a 45% increase in online sales driven in part by its new Woolies Dash delivery service. Online sales contributed 3.2% to sales in its South African food division.

The Fashion Beauty Home (FBH) business saw 5.4% sales growth for the year, despite its trading space shrinking by 4.5%. Online sales grew by 13%, contributing almost 4.5% of South Africa's sales.

In total, Woolworths' group sales grew by 1.4% compared to the previous year. In its 2021 financial year, sales grew by 9.7%. – Fin24

Transnet swings back into profit

Transnet has posted a profit of R5 billion for the year ended in March, recovering from a loss of R8.7 billion in 2021.

Revenue increased 1.8% to R68.5 billion for the year, while net profit after tax was R5 billion, representing an upward swing of R13 billion compared to the loss registered in the 2021 financial year.

Transnet CFO Nonkululeko Dlamini said the group was pleased to see some "green shoots" following the adverse impacts of Covid-19 in 2021.

The state-owned logistics company also received its first unqualified audit opinion from the auditor general in four years.

Dlamini said the unqualified audit opinion was a key milestone as a qualified audit opinion has, in past years, had implications for Transnet's ability to raise funding in the market. – Fin24

Truworths increases retail sales

Truworths says it managed to increase retail sales by 9% to R18.5 billion despite challenges like load shedding, global supply chain disruptions and financial pressure on consumers.

It said in a trading statement on Tuesday that its audited results for the year ended 3 July 2022 would likely be released on or about 1 September 2022.

According to Truworths, it has a strong balance sheet and could manage margins and costs effectively.

Account sales comprised 52% of group retail sales for the period - the same level as during the 2021 financial year - but with account sales increasing by 8.7% and cash sales increasing by 9.3%.

The company describes its debtors book as in a healthy position with overdue balances as a percentage of gross trade receivables improving to 14% from 15% during the 2021 financial year. – Fin24

Offer in the works for Ascendis

Wellness group Ascendis is looking to raise R101.5 million through a rights offer in a bid to cut down on debt and grow its business.

Last week, the embattled company entered into an agreement to sell its pharmaceuticals division to Austell Pharmaceuticals for R410 million. If the deal is approved by shareholders, the proceeds will go towards paying the R590 million Ascendis owes Austell.

Ascendis has sold some of its assets – the latest being its skincare business Nimue, to Amka Products earlier this year for R102 million – in a bid to cut down its debt.

The group aims to whittle down its businesses to medical devices and consumer health.

In a statement on Tuesday, the wellness group said it would issue 143 million shares at an undiscounted 71 cents per share. The rights offer will be underwritten by Calibre Investment Holdings. – Fin24