Company News in Brief
Mondi to shutter Bulgarian plantPaper and packaging group Mondi announced it had decided to shutter its Stambolijski mill in Bulgaria following a fire in September. The fire caused extensive damage to the 100 000 tonne per annum brown kraft paper machine and stopped production at the site, but "thanks to the swift and professional response on the day, everyone on site remained safe." After evaluating the options for repairing the mill and the ongoing investment required for the mill to remain competitive into the future, Mondi has concluded that closing the mill and serving customers out of its network of other kraft paper mills is the best course of action overall, it said. This decision will affect around 300 Mondi Stambolijski employees. There is expected to be approximately €100 million (R1.9 billion) of net closure costs, primarily related to a non-cash asset impairment, which it will book as a special item. The group is the world's number one producer of kraft paper — some 1.1 million tonnes in 2023. -FIN24
Sanlam appoints Lethu Zulu as head of hedge fund
Sanlam Investments Multi-Manager announced the appointment of Lethu Zulu as head of Hedge Funds effective 1 October. In this role, Zulu will oversee both local and global hedge funds, managing all aspects of the asset class. He is returning to Sanlam Investments Multi-Manager, having previously worked with the firm from February 2016 to November 2021. Zulu brings an impressive track record and deep expertise to his new position. He previously served as portfolio manager of global and specialist portfolios at Alexforbes Investments, where he headed up manager research for global and specialist managers across various asset classes, including hedge funds, equities, and fixed income. Zulu is a master's degree candidate in computational and applied mathematics at the University of the Witwatersrand and has completed the Programme for Management Development at the University of Cape Town. -FIN24
Foschini acquires White Stuff
Foschini owner TFG on Friday announced the acquisition of UK-based fashion and lifestyle retailer, White Stuff, a move that it says will allow it to create a unified platform in the country, largely mirroring its platform structure in SA and Australia. The acquisition was made through the London subsidiary of TFG, which has a portfolio of 35 retail brands in 23 countries and over 4 700 stores. The White Stuff brand joins UK-based fashion brands already owned by TFG, such as Hobbs, Whistles and Phase Eight. No figure was given for the transaction, meaning that it is less than 5% of its R49.5 billion market value — or less than about R2.5 billion. Founded in 1985, White Stuff specialises in unique, thoughtfully designed clothing and accessories for women, men and children, the group said in a statement. White Stuff has 113 stores and 46 concessions in the UK – within John Lewis, Marks & Spencer and other quality independent retailers. The business also operates six stores and 25 concessions across Europe. White Stuff also retails online internationally and has 606 wholesale stockists – 178 in the UK and Ireland and 428 internationally. Online sales currently contribute 43% of total sales. -FIN24
Dis-chem revenue grows 9.6%
SA's second-biggest pharmacist by store numbers, Dis-Chem, reported that its revenue grew 9.6% to R19.6 billion in the six months to end-August, and headline earnings 16% to R580 million. The group also increased its dividend by 16.1% to about 26.98c. The group said its biggest contributor to earnings growth was the containment of its payroll cost, predominantly driven by the successful deployment of "staffing framework 1.0", which delivered positive operating leverage, allowing operating profit to grow at a faster pace than revenue. -FIN24
Sun International asks to block Emperor's Palace sale
Sun City owner Sun International announced on Friday that the Competition Commission said it would recommend that its about R7.3-billion acquisition of Peermont, which owns Emperor's Palace resort, be blocked. "The detailed report containing the reasons and recommendation made by the Competition Commission to the Competition Tribunal will be reviewed and evaluated by the company once received," the group said. The group added that there was still a possibility that the transaction would be approved by the Competition Tribunal. The commission acts as the investigative and advisory body, while the tribunal acts as a court and has the final say. Sun International, valued at about R11.4 billion on the JSE, had announced the proposed deal in late 2023 but had said recently it was looking to conclude the transaction in the first quarter of 2025. -FIN24
Mercedes Benz profits drop 50%
German luxury carmaker Mercedes-Benz said on Friday its profits in the third quarter plunged by more than 50%, hit hard by weakness in the key Chinese market. Net profit came in at €1.72 billion (R33 billion), down from €3.7 billion a year ago, while sales slipped almost 7% to €34.5 billion, the group said. Vehicle deliveries fell 3%, dragged down by a 13% fall in China. Sales of its most profitable luxury cars worldwide fell 12%. The poor results were due to a "challenging market environment and fierce competition, particularly in China", the auto manufacturer said. Mercedes chief financial officer Harald Wilhelm conceded that the earnings "do not meet our ambitions". — AFP