Hudaco has presented interim results to the end of May 2021 that look spectacular when compared to its prior period numbers. It is pointed out that those were mired in hard lockdown period, creating a distorted picture. The interim results for the 2019 financial year are far more comparative as a ‘normal’ trading period.

Against its half-year results for 2019, Hudaco’s revenues grew 6.5%, margins expanded, seeing gross profit rise 9% and operating leverage rallied resulting in operating profits increasing 20%. Group sales at R3.4 billion for the half year are up 6.5% on 2019. Operating profit increased to R357 million, with an operating margin of 10.6%, a very respectable number for the first six months, which includes all the major holiday periods.

Hudaco Industries is a South African group specialising in the importation and distribution of high- quality branded automotive aftermarket, industrial and electronic consumable products mainly in the southern African region. Hudaco businesses serve markets in the automotive aftermarket, power tool and fasteners, data networking, battery, security and communication equipment, bearings and belting, electrical power transmission, diesel engine, hydraulics and pneumatics, specialised steel, thermoplastic fittings and filtration businesses supply engineering consumables, mainly to mining and manufacturing customers.

Engineering consumables
There are 18 businesses that make up this segment. They include Dosco Precision Hydraulics, foundries Gear Pump Manufacturers and Joseph Grieveson and Engineering Technology Services.

Not only is the group’s top-line growth encouraging, but the lean operating structure has seen this growth affect its bottom line. The company has seen a strong recovery in the domestic mining, automotive and manufacturing sectors.