Raubex H1 HEPS up 16%

Construction and materials group Raubex has announced strong revenue and profit growth for the first half of the year ending in August, with headline earnings per share up over 15 per cent. The company has also increased its dividend above 50 cents for the period, showcasing a robust financial performance in a challenging economic environment. Joining CNBC Africa to discuss the results, Felicia Msiza, the CEO of Raubex Group, highlighted the key factors contributing to the company's success. Msiza pointed out that despite facing tough macroeconomic challenges, including inflationary pressures and supply chain delays, Raubex has delivered solid performance across all four divisions within the group. The company's performance was further supported by successful project executions in Zimbabwe, strong operations in Western Australia, and the acquisition of Baruba resources contributing to phenomenal results. The improved profitability of Raubex, with operating profit increasing by almost 27%, can be attributed to the successful execution of key projects like the Bytbridge border post and favorable margins in Western Australia. Msiza emphasized the importance of a dedicated team in delivering quality projects within budget and timelines, leading to enhanced profitability. However, margins in the roads and earthworks division continue to face pressure, and Msiza expects improvement once the industry receives more work. Looking ahead, Raubex sees further growth opportunities from significant contracts in Namibia and the Sanque River bridge project, along with a substantial order book of 16.4 billion rands. Msiza expressed enthusiasm about these new projects and reiterated the company's commitment to delivering on quality, budget, and timelines. Despite grappling with inflationary pressures affecting costs of materials like steel and diesel, Raubex has effectively managed these challenges, reflecting resilience in their operational strategies. Inflation remains a key concern for Raubex, particularly regarding its impact on margins. The company has been proactive in adjusting prices to mitigate the effects of rising costs, but continuous monitoring and strategies are essential to sustain profitability. Looking to the future, Msiza highlighted the importance of securing tenders in the roads and earthworks segment to drive improved margins. Active market engagement and a robust project pipeline will be crucial in enhancing profitability in this division. In conclusion, Raubex Group's impressive performance in the first half of the year underscores its resilience and strategic focus in navigating complex economic conditions. With a diversified portfolio of projects and a commitment to operational excellence, Raubex is well-positioned to capitalize on growth opportunities and deliver sustained value to shareholders and stakeholders.