Hulamin shares plunge over 12% amid interim loss forecast

Hulamin, South African JSE-listed makers of semi-fabricated aluminium products, saw its share price slide over 12% to R2.46 on Friday after it forecast an interim loss despite higher sales volumes.

The higher sales in the six months to June 30 were ascribed to an improved sales mix, and despite a 25-day integrated plant shutdown. The share price is lower than the R3.67 it traded at 12 months before, but higher than the R1.95 it was trading at a year ago.

However, the higher sales were offset financially by the impact of a stronger exchange rate, elevated inflationary energy costs, and increased pricing pressure in the local can-end market, the company directors reported in a trading statement on Friday.

Normalised headline earnings a share (HEPS) were expected to be between 54% and 42% lower to between 23 cents and 29 cents. HEPS for continuing operations were expected to be between 13 cents and 15 cents, a decrease between 85% and 82%.

The Pietermaritzburg-based company’s directors said key business objectives for the first half of the year centred on managing the plant shutdown and building sufficient finished goods to supply the market during this shutdown.

The commissioning of the final phase of the market-driven wide can-body expansion project was completed on schedule.

The Containers division ceased operations effective June 6, 2025. The sale and wind-down of operating assets was currently underway.

Negotiations had begun regarding the disposal of Hulamin Extrusions. The financial reclassification of the business as held for sale resulted in an impairment of R69 million being recognised. The full results for the half year are expected to be announced on August 25, 2025.

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