Company news in brief
Healthy sales growth for TruworthsFashion retailer Truworths reported sales grew 8.2% to R12.2 billion in its half-year to end-December, lifted entirely by its UK Office business.
Retail sales for Truworths Africa, mainly its South African operations, decreased by 0.3% to R8.4 billion, though the group noted this was off a high base in the prior year. Retail sales were impacted by poor economic conditions and high-interest rates, the group said, also citing a hit to its fashion lines from port congestion.
Retail sales for Office rose 15.6% in pound terms and by 33.1% in rand terms to R3.8 billion, benefiting from its "unique market positioning, brand partnerships and strong online presence," the company said. – Fin24
Gemfields’ millions in net cash
Ruby and Emerald minder Gemfields said it had net cash of US$11.1 million (R209 million) as of its half-year to end-December, before auction receivables of US$38.9 million.
Total auction revenues of US$242 million were the group's second highest, while it says it has planned a commercial quality emerald auction in the first quarter of 2024, and a higher-quality emerald and mixed ruby auction for the second quarter. – Fin24
ArcelorMittal warns shareholders
South Africa's biggest steel maker ArcelorMittal SA warned shareholders that it swung into a loss in its year to end-December, hit by weak demand, load shedding, logistics dysfunction, as well as elevated imports.
The group expects headline earnings per share to fall as much as 179% to a loss of R1.85 and basic earnings as much as 261% to a loss of R3.80.
The group also expects to make an announcement on the future of its long steel operations soon, having announced in November it may close its Vereeniging and Newcastle plants. – Fin24
York Timber clinches deal with Sappi
Forestry and fruit group York Timber announced it had reached a deal with Sappi to buy two portions of land for R65.4 million.
The Pine Valley Farms comprise a total of 1 193 hectares of land containing standing timber plantations, and are contiguous to York's existing operations.
The benefits include 300 hectares of arable land for the expansion of York's existing avocado and soft citrus farming operations, while also reducing its dependency on external third-party lumber purchases. – Fin24
Amazon drops iRobot plans
US ecommerce titan Amazon said it was scrapping its plans to buy the iRobot vacuum maker after the EU's antitrust authority objected to the plan over competition concerns.
"We're disappointed that Amazon's acquisition of iRobot could not proceed," said David Zapolsky, Amazon SVP and General Counsel.
The EU in July opened an antitrust investigation into Amazon's US$1.7 billion (R31.9 billion) purchase of iRobot, which is best known for its Roomba self-operating vacuum cleaners.
Brussels at the time said it was probing whether the acquisition would allow Amazon to "restrict competition" and "strengthen its position as an online marketplace provider." – Fin24/AFP