Reunert reported an over 20% rise in revenue and 14% profit growth for the 2023 financial year as load-shedding led consumers to look for alternative energy sources.
Reunert’s results for the year ended 30 September 2023 revealed a strong performance. Revenue is up 24% to R13.78 billion, and profit for the year grew by 14% to R959 million.
Basic earnings per share grew by 11% to 578 cents per share, and headline earnings per share increased by 16% to 602 cents.
This increase in earnings was driven by the strong performances of Reunert’s Applied Electronics and Electrical Engineering segments.
In particular, the Applied Electronics segment had an excellent year as defence revenue reached a multi-year high. The company said the demand for the segment’s renewable energy products and solutions remained positive.
This resulted in the segment’s revenue increasing by 51% to R3.56 billion and a segment operating profit increase of 163% to R432 million.
In addition, as global supply chains eased and commodity and electronic component prices stabilised, Reuenert was able to reduce working capital by the 2023 financial year-end despite the substantial increase in revenue.
This reduction took place in H1, and the company released R317 million from working capital, resulting in the full year’s net investment into working capital amounting to R7 million, compared to R334 million in 2022.
The substantial cash generated from operations and the conversion of the company’s overdraft facilities into longer-term debt resulted in a net cash position of R1.17 billion.
Reunert declared a final cash dividend of 249 cents per ordinary share, an increase from the 224 cents declared in 2022.