Afrox reaps restructuring benefits
Afrox says its first half earnings will be quite a bit higher thanks to improved margins.
|||Johannesburg - African Oxygen (Afrox) says its first half earnings will be quite a bit higher thanks to improved margins.
In a statement issued on Tuesday, the listed company said earnings per share should be between 106 percent and 127 percent higher for the six months to June, coming in at between 72c and 79c a share.
Last year, the company recorded earnings per share of 35c.
Headline earnings per share - a key measure of profitability in South Africa that strips out once-off items - should improve by between 90 percent and 109 percent.
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This means that headline earnings per share should come in at between 71c and 78c compared with the 37c a share reported last year.
Afrox explains the increase in earnings per share is mostly due to improved margins, as a result of the restructuring initiatives initiated in 2015. In addition, the previous period included spending on restructuring, which was not repeated.
The group’s results should be published on September 8.
IOL