SA Earnings Week Roundup

The South African earnings season is in full swing with a couple of surprises despite a 0.7% contraction in the second quarter (Q2) and the Reserve bank’s aggressive stance on inflation.

Harmony Gold Mining Company Limited (JSE: HAR)

South Africa’s largest gold miner, Harmony Gold Mining, experienced a decrease in gold production at the onset of its 2023 financial year due to the closure of its Bambanani mine and the ongoing energy crisis currently faced by the economy.

Total gold production was down 4% for the three months that ended on 30 September 2022.

Revenue: For the year ended 30 June 2022, revenue increased by 2% to R42 645 million from R41 733 million from the previous fiscal year-end. The rise in gold price assisted in offsetting the reduction in production levels.

EPS: For the year ended 30 June 2022, the total loss per share of 172 cents reflects a 120% decrease from the EPS of 842 cents at the end of the previous financial year.

Headline earnings declined by 49% to 499 cents per share compared with headline earnings of 987 cents per share in the 2021 financial year.

Transaction Capital Limited (JSE: TCP)

Transaction Capitalrecently reported impressive results, with headline earnings increasing by 52.6% in the year to 30 September 2022. Transaction Capital stated that it now wants 90% of WeBuyCars as it continues to surpass targets.

EPS: Increased 17% from 147.9 cents to 172.5 cents

Dividends: The total annual dividend was raised by 35% to 70 cents per share.

Transaction Capitalincreased core earnings from continuing operations by 24% to R1.25 billion. Furthermore, core earnings per share increased by 17% to 172.5c.

WeBuyCars and Nutun maintained performance expectations, delivering solid earnings growth, which supported the Group’s overall earnings.  

Vodacom Group Limited (JES: VOD)

Vodacom Group has encountered significant pressure from the country’s ongoing fight against inflation and load-shedding crisis, stating that it has spent an alarming R5.8 billion on its local network in its half year, aiming to ensure a more resilient and robust network for customers.

Over a two year period, Vodacom has spent in excess of R2 billion on batteries.

EPS: For the six months ended 30 September 2022, EPS of 457 cents is 9.3%, down from the six months ended 30 September 2021 (504 cents).

Revenue: Group revenue was R53 713 million, up 7.7% from the six months ended 30 September 2021 (R49 856 million). This was supported by normalized growth of 5% in conjunction with rand depreciation against international currencies.

The Spar Group Limited (JSE: SPP)

As of 16 November 2022, Spar Group reported its annual results for the year ended September 2022. Despite economic headwinds facing businesses and consumers, rising inflation, and South Africa’s ongoing energy crisis, the Group delivered a sound set of results.

EPS for the year ended 30 September 2022 is down 4.9% (1 118.2 cents) from the previous financial year’s end (1 176.3 cents).

Dividends: DPS is down a significant 51% (400 cents) from the previous financial year’s end (816 cents).

Against liquor sale restrictions in 2021 due to the COVID-19 pandemic, Tops at Spar delivered an awe-inspiring liquor sales growth of 43%. This has resulted in Tops re-establishing its position as the primary liquor brand in South Africa.

Sources: South African Reserve Bank, Moneyweb, BusinessTech, Harmony Gold Mining Company Limited.