Trading Day – Sun International sees impressive rebound from Covid losses

Sun International’s revenue was up 37%, while earnings per share (EPS) went from a loss of R0.32 to a profit of R0.94.

Goldman Sachs held 7.5% of the outstanding ordinary shares in Nedbank, and by 17 August, it had reduced this to 2.2% of the outstanding shares.

Here is the biggest news of the day.

• Sun International sees impressive rebound from Covid losses. Group revenue was up 37% to R5.2 billion, while earnings per share (EPS) went from a loss of R0.32 to a profit of R0.94. The group declared an interim dividend of R0.88 per share.
• Goldman Sachs disposes of a significant stake in Nedbank. On 8 August, Goldman Sachs held 7.5% of the outstanding ordinary shares in Nedbank, and by 17 August, it had reduced this to 2.2% of the outstanding shares.
• Walmart makes a potential offer to acquire remaining shares in Massmart for R62 per share. The price marks a 53% premium on the closing price on Friday. The announcement does not constitute a Firm Offer in terms of the Companies Act, but if successfully implemented, it will see Massmart be delisted from the JSE. Wallmart bought an initial 51% stake in Massmart in 2011 for R148 per share, but the company suffered severe headwinds and required more and more support from its parent company. Massmart also released its half-year earnings today, showing revenue remaining flat at R41.3 billion, while the headline loss per share (HLPS) increased 46% to R4.35. The gross margin continues to be under pressure, decreasing to 19.6%.
• Rebosis to enter business rescue and suspend its JSE listing. The board deemed its cash flow over the next six months to be vulnerable to slow disposal of assets, a continued rising interest rate environment and the continuous delay of rental payments by certain national and provincial government departments, while it also could not recover higher municipal costs from sovereign tenants.
• AdvTech reports a healthy increase in earnings. Revenue increased 18% to R3.4 billion, while earnings per share (EPS) increased 19% to R0.68.
• Sea Harvest reports a slight decline in earnings despite increasing revenue. Revenue was up 29% to R2.7 billion, while earnings per share decreased 14% to R0.67. The group attributed the challenging 6 months to quota losses in the South African Fishing segment from the Fishing Rights Allocation Process (FRAP), significant input cost pressure, and supply chain disruptions.
• Hulamin sees a sizeable increase in earnings. Revenue increased by 45% to R7.9 billion, while earnings per share (EPS) increased 42% to R0.47.
• US and Asian markets are down, and the US dollar has strengthened following Jerome Powell’s Jackson Hole speech. The S&P 500 declined 3.4% on Friday. Powell said, “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” and “The historical record cautions strongly against prematurely loosening policy.”