Diversified agriculture and forestry company TWK Investment Ltd has announced a 4,3% increase in its revenue from R3,7 billion to R3,9 billion for the six months ended
28 February 2019.
André Myburgh, CEO of TWK, said in a statement that the company’s timber division’s performance contributed to the company’s growth during the period under review, and was driven by increased timber sales, improved margins, cost control and effective working capital management.
“The general trading conditions came under pressure, which resulted in decreased sales and net profit in the retail segment compared with the previous period,” Myburgh said.
This, together with improved efficiencies, resulted in an increase of 23% in earnings before interest and tax (EBIT) to R211,1 million (Feb 2018: R171,7 million), which equated to an EBIT margin of 5,4% (Feb 2018: 4,6%).
“Profit after tax increased 30,5% to R111,8 million from R85,7 million reported for the comparable prior period. Normalised headline earnings increased to 313c/share, which is 34,9% higher than the corresponding period [last year],” the statement said.
Myburgh said the company remained well placed to grow revenue through ongoing product innovation and expansion.
“TWK expects that the good momentum built up by the different segments will continue and that the results for the full financial year ending 31 August 2019 will exceed those of the prior financial year,” he added.