Barloworld reported FY revenue of R*49.7bn, down 17% y-o-y as the operating margin was also down from 6.6% to 4.1%.
While Barloworld has not been immune to the impact of Covid-19, swift action, a focus on creating a fit-for-purpose business and containing costs to preserve cash, resulting in the maintenance of an impressively strong balance sheet with a robust and solid liquidity position and cash balance.
Although all businesses were impacted by reduced activities during Covid-19 lockdowns, the Automotive and Logistics divisions have been supported by a steady increase in activity as lockdown restrictions eased and new contracts awarded. During the period under review, the Automotive and Logistics divisions were successfully integrated with centralised shared services functions and realised savings of R88m.
Commenting on the results, Barloworld CEO Dominic Sewela said, “Barloworld is moving towards becoming a processing, distribution and services company focused on key markets and will leverage our core strengths and building on our B2B capabilities. We will continue to improve efficiencies and performance by adapting and transforming to align with the changing environment and managing levers under our control. This includes prudent cost containment and cash preservation, as well as reducing invested capital in the short to medium term until the operating environment improves. In line with the strategy, Barloworld will continue to evaluate programmatic M&A to support key growth areas aligned to the group’s core businesses of Industrial Equipment and related services and food and ingredients under the Consumer Industries vertical.”
Following the recent decisive actions taken, Barloworld expects to begin benefiting from the significant cost efficiencies and operational synergies in the short term. Our strong balance sheet and a stable business platform position us well to continue to show resilience in the midst of volatile macroeconomic dynamics in the local and global economies.
Source: Barloworld
*€=ZAR18.43/$=ZAR15.38
