Prosus has entered into an agreement with Kismet Capital Group to sell Russian classifieds business, Avito Group, for R44 billion.
Meanwhile, Murray & Roberts expects to turn to a loss due to supply chain disruptions and project delays.
In other news, Calgro M3 Holdings reports an increase in earnings and profit margins.
Here is the biggest news of the day.
- Prosus has entered into an agreement with Kismet Capital Group to sell Russian classifieds business, Avito Group, for R44 billion (RUB 151 billion). Avito has a net asset value of US$1 379.9 million and made a profit of $160.3 million in the year ended March 2022. Compared to that, the purchase price equates to $2.4 billion.
- Murray & Roberts expects to turn to a loss for the current half-year that will end December 2022. The company released a trading statement, noting that it has a reasonable degree of certainty that its financial results will be down by at least 100%. This is due to margin deterioration caused by supply chain disruptions and subsequent delays in reaching project milestones. The delays are also leading to slower payments on projects, and the company needs to increase its working capital to fund the shortfall. Margin deterioration has recently been noted specifically with M&R’s Traveler project in the USA and the Waitsia project in Australia. Both of these projects are expected to be close to completion by the financial year end in mid-2023.
- Calgro M3 Holdings reports an increase in earnings and profit margins. Headline earnings per share (HEPS) increased from R0.43 to R0.57 for the half-year ended August. Gross profit margin increased from 19.7% to 22%. The company did not declare a dividend for the interim period.
- Quantum Foods expects a significant drop in earnings. The company released a trading statement, expecting headline earnings per share (HEPS) for the year to fall at least 63% or R0.33, down from R0.52 last year. The company attributes this to a weak demand environment from SA consumers, increased input costs, especially from feed material and energy costs, as well as avian flu outbreaks in South Africa.