EOH nightmare continues

EOH released its audited financial statements for the year ended 31 July 2023 and revealed yet another disappointing set of results.

A quick glance at EOH’s official results makes it look like the company is on the right track and has improved in many areas.

However, it does not tell the full story. In its SENS announcement, EOH focuses on continuing operations instead of its audited figures.

The audited figures are given as part of the company’s annual results presentation and reveal the true extent of the disastrous results.

Revenue is down. Gross profit is down. Operating profit is down. Adjusted EBITDA is down. Loss after tax increased.

It tells the story of a company which has yet to find a strategy that works and will create shareholder value.

EOH is trying hard to convince investors that it is doing well when looking at continuing operations, but it has used this line once too often.

Investors want to see growth, which EOH is not delivering. Revenue declined from R6.9 billion to R6.3 billion, continuing the trend over the last five years.

Operating profit declined from R282 million to R165 million, and the loss after tax increased from R18 million to R52 million.

The table below shows EOH’s audited financial figures for the year ended 31 July 2023.

EOH Results (in R million)20222023Change
Gross profitR2,014.00R1,747.00-13%
Adjusted EBITDAR503.00R312.00-38%
Loss after tax(R18.00)(R52.00)-189%