Hulamin, which has put its Hulamin Containers business unit up for sale, said Monday that the benefits of a recovery in demand for its aluminium products have been constrained by operational challenges and rolled product volumes increased only 2% in 2024.

The Pietermaritzburg-based mid-stream aluminium semi-fabricator said Monday that no dividend was declared after basic normalised headline earnings per share (NHEPS) fell by 45% to 42 cents from 77 cents. This figure excludes metal price lag and non-trading items.

Hulamin Containers, considered non-core to operations following a review of all group investments in 2024, is a downstream business that produces standard and customised rigid foil containers for the catering sector and household use. Its current focus is on improving operational performance and cost competitiveness while regaining market share.

“The anticipated transaction is expected to unlock working capital, enabling Rolled Products to simplify its foil product mix and prioritise the higher-margin export foil segment,” said chairman Thabo Leeu in the integrated report released the same day as the annual results.

“The 2024 financial year began with promise as market conditions showed significant improvement, particularly in the export segments. Demand recovery brought renewed opportunities, although pricing pressures in certain streams, such as export can stock and standards, persisted. Locally, demand remained robust, with strong momentum for Can Body,” Hulamin CEO Meganathan Gounder said in a statement.

Operational challenges and a fire at the Can End finishing line limited some opportunities created by this demand recovery in the second half. Gounder said their focus remains on executing the five-year strategy, with the successful completion of phases 1 and 2 of the market-driven Wide Can Body investment. The final phase is expected to be completed this year.

Gounder highlighted key priorities, including completing phase 3 of the Wide Can Body plant upgrade, with first production expected at the end of the fourth quarter. The company aims for continued growth in core market segments and improved scrap utilisation, while reducing working capital and net debt.

Revenue fell by 1% to R13.64 billion, but operating profit increased by 2% to R540.38 million. Local sales accounted for 55% of the total, which was coupled with record can body and plate volumes.

The Coil Coating Line 2 fire impacted 8 000 tons of higher-margin export Can End and Tab. Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 12% to R544m.

Hulamin’s rolled products are sold to South African customers and exported to clients in the US, Western Europe, and the Far and Middle East for use in packaging, transport, engineering, and building and construction sectors. The company's key focus areas for rolled products are on-time delivery, local market growth, and capturing the growing can packaging market segment.

Hulamin Extrusions, currently undergoing strategic review, supplies the automotive, transport, and other engineering-related markets. Its key strategic focus areas include securing billet and secondary metal supply, ensuring reliable manufacturing performance, and maintaining cost competitiveness.

Leeu said that as part of their commitment to the group simplification strategy and stabilising core businesses, all group investments are being reviewed. The Hulamin Containers business is up for sale, and “advanced steps are underway to secure a black industrialist buyer,” he said.

“Hulamin management is well-positioned to complete plant upgrades, focus on net debt improvement, and capitalise on the growing local demand,” Leeu said.

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Hulamin reports operational challenges amidst demand recovery in aluminium products