KAP Industrial resumes dividends after strong full-year performance

KAP Industrial, a leading industrial and manufacturing company, has reported a significant increase in their headline earnings per share by a staggering 177%, reaching 37.9 cents. The company also experienced a rise in revenue to 24 million rand, marking a 9% increase from the previous year. Following these positive financial results, KAP Industrial has resumed its dividend payments. CNBC Africa recently interviewed KAP CEO, Gary Chaplin, to discuss the company's performance and the impact of the COVID-19 pandemic on their operations. When asked about the resumption of dividends signaling the end of the worst impacts of COVID-19, Chaplin highlighted that while the risks of the pandemic still exist, the company has become more adept at managing the challenges and adapting to the new normal. He emphasized the importance of agility and efficiency in navigating the ongoing uncertainties. Chaplin acknowledged the persistent influence of COVID-19 on their business but expressed confidence in KAP Industrial's ability to effectively deal with the changes and continue serving their markets and customers. Despite the challenges posed by the global supply chain disruptions and rising commodity prices, Chaplin noted that the company benefited from strong demand in the domestic market, particularly in sectors like home-related products and health and hygiene. The increased spend in these areas has supported KAP Industrial's businesses, offsetting the inflationary pressures they have faced. In terms of the company's operations in Botswana, Chaplin acknowledged the challenges posed by the pandemic in the region, particularly in the logistics and distribution business. However, he remains optimistic about the opportunities in Botswana and reiterated the company's commitment to retaining its position in the market while ensuring competitiveness and sustainability. Looking ahead, Chaplin discussed the potential for growth and expansion in the region, particularly with the implementation of the Africa free trade agreement. He highlighted the opportunities for cross-border activities and increased exports, which could benefit KAP Industrial's operations in the region. When asked about the security issues in Mozambique, Chaplin acknowledged the concerns but expressed optimism about the growth opportunities in the region. Despite the challenges posed by the recent acts of terrorism, he emphasized that KAP Industrial had experienced limited impact thus far and remained hopeful that the Mozambican authorities would address the security issues effectively. Overall, Chaplin conveyed confidence in the company's resilience and ability to navigate the complexities of the current business environment, emphasizing a strategic focus on long-term growth and sustainability.