Weekly Earnings Outlook

Update 28 August

The 15th BRICS summit was held in Johannesburg, South Africa, from 22 to August 24, 2023. The summit was presided over by South African President Cyril Ramaphosa, who currently holds the chairmanship of BRICS. The summit’s theme was “BRICS and Africa: Partnership for Mutually Beneficial Development.”

One of the summit’s key outcomes was the decision to expand BRICS. The leaders agreed to invite Argentina, Egypt, Indonesia, Iran, Kazakhstan, and Saudi Arabia to join the bloc as “observers.” This is a significant development, as it could pave the way for BRICS to become a more inclusive and representative organization. Another update from the summit is that the leaders agreed to establish a BRICS currency reserve pool. This pool would be used to provide financial support to BRICS countries during times of economic crisis. The leaders also agreed to work together to develop a new international financial architecture more responsive to developing countries’ needs.

The leaders also discussed the need to strengthen BRICS cooperation in science and technology, innovation, and education. They agreed to work together to promote sustainable development and address climate change. They also reaffirmed their commitment to multilateralism and the rules-based international order.

Sasol Ltd. (JSE: SOL)

The group encountered several obstacles in their latest results that impacted their profitability. Factors such as dwindling sales volumes, a dip in Brent crude oil prices, and elevated operational costs all contributed to a decline in their bottom line. Furthermore, the increased expenditures related to external coal and fuel acquisitions added to their financial strain. The group’s performance was also hampered by constraints within their South African operations, stemming from issues such as power availability, railway functionality, and broader infrastructure performance.

Despite the hurdles, the group’s financial dynamics exhibited a mix of trends. While their total debt experienced an upward trajectory, increasing from R105.1 billion to R125.6 billion, a silver lining emerged in the form of augmented cash generated through operating activities. This crucial metric demonstrated a noteworthy growth of 15%, culminating in R64.6 billion. Another standout achievement was the advancement made through the Sasol 2.0 transformation program. This initiative, aimed at revitalizing the group’s operations and strategies, bore impressive fruits. The group contributed an EBITDA of R13.5 billion, a significant overachievement compared to the set target of R8.5 billion.

In the realm of earnings, a divergent tale unfolded. Basic earnings per share experienced a sharp decline, plummeting from 62.34 cents in the previous year to a mere 12.00 cents. Yet, this apparent setback was offset by a contrasting surge in headline earnings. Despite the intricate challenges, the group elevated their headline earnings from 47.58 cents in the preceding year to an improved 53.75 cents in the current fiscal year.


Nvidia unveiled its first-quarter results for the April 30, 2023 period, painting a portrait of remarkable growth and innovation. Among the highlights, the Data Center segment emerged as the principal catalyst behind the company’s surge in performance. Fueled by an escalating demand for extensive language models and generative AI, cloud service providers and major players in the consumer internet sphere played a pivotal role in propelling this unit to new heights. Impressively, the revenue for this sector soared past $10.3 billion, marking a staggering increase of over 170% compared to the previous year. This surge was the direct outcome of key industry players’ swift adoption of Nvidia’s next-generation processors.

Undoubtedly, innovation was the pulse of Nvidia’s first quarter, with many new product releases and partnerships announced.

Of noteworthy significance was the revival witnessed within the gaming division. This achievement carries particular weight considering the segment’s hurdles in preceding quarters, including subdued demand, macroeconomic pressures, and the normalization of supply chains. In an impressive turnaround, the division’s revenue surged past the $13.5 billion mark for the three months concluding in June. The market responded emphatically to Nvidia’s achievements, as the firm’s shares surged by a notable 6.5% after-hours trading in New York. These gains only added to the company’s substantial growth throughout the year, reflecting the widespread recognition of their accomplishments.

Jensen Huang, Nvidia’s visionary chief executive, summed up the momentous period aptly, proclaiming the inception of a “new computing era.” He highlighted the global shift from conventional computing to accelerated computing and generative AI in a poignant statement. This shift underscores Nvidia’s role as a trailblazer, navigating the transformative landscape of technology with unwavering determination and a clear focus on innovation.

Sources: Businesstech, Moneyweb, BBC News

Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.