KAP FY24 HEPS down 4%

Shares of CAP were down 5% as CEO Gary Chaplin discussed the company's financial performance for the fiscal year 2024 in an interview with CNBC Africa's Godfrey Mutizwa. Addressing concerns over the lack of dividends, Chaplin explained that the decision was influenced by the company's focus on capital projects and debt reduction. Despite this, he highlighted the success of five out of six divisions and the completion of major projects funded through operating cash flow. The underperformance of one division, Safrapor, was attributed to the cyclical nature of the global polymers industry, with hopes for improvement in the coming years. Unitrans, another key unit, is undergoing restructuring and poised for growth in line with positive economic sentiment in South Africa. The company's recent investment of 2.5 billion Rand in capital projects, including a new manufacturing plant, sets the stage for future earnings growth in the next two to three years. Overall, CAP remains optimistic about its prospects and committed to delivering improved results in the upcoming years.