Afrox, a subsidiary of The Linde Group has recorded an 11% increase in annual revenue for the period ended 31st December 2011. Revenue also exceeded the R5bn mark.
Revenue exceeded the R5bn mark, coming in at R5.2bn. EBITDA also increased 28% to R774m, meanwhile net profit including impairments reached R183m.
According to Afrox, the company continued with its programme to invest in plant modernisation, additional capacity, efficiency enhancements and spent R416m during 2011.
The company commented, “At the heart of our improved financial performance in 2011 are operational efficiencies, cost management and effective procurement.”
Afrox elucidated, “South Africa’s manufacturing sector recovery, a key economic indicator for Afrox, did not consolidate on the path that began towards the end of 2010. As a result, Afrox was unable to achieve the projected growth in sales volumes.”
Meanwhile, volumes in the welding consumables market, which is traditionally linked to infrastructure development, continued to be under pressure but managed a 3% growth in 2011. On related lines, operations in African regions outside of South Africa also appreciated, contributing to 26% to the overall Group EBITDA. Afrox’s analysis revealed, “This continued growth is backed not only by the demand for commodities and infrastructure, but also a regional population that is characterised by the rapid growth of a middle class. This has created demand for consumer products, beverages and healthcare, all areas served by Afrox.”
The Board declared a final cash dividend of 23 cents per share. In combination with the interim cash dividend of 22 cents per share, the company announced a total of 45 cents per share.