Key Points:
- Revenue grew by 6.6 percent to R8.28 billion ($448 million), driven by the RPI: Industrial segment.
- Net income decreased by 1.8 percent, with profit margins down from 6.3 percent to 5.8 percent.
- EPS missed analyst estimates by 3.5 percent, impacted by higher general and administrative costs.
Invicta Holdings, led by South African billionaire Christo Wiese, reported its financial results for the 2024 fiscal year, showcasing a commendable increase in revenue but a slight decline in net income and profit margin.
The company achieved a revenue of R8.28 billion ($448 million), reflecting a 6.6-percent growth compared to the previous fiscal year. Despite this growth, net income fell by 1.8 percent to R480.5 million ($26 million), and the profit margin decreased from 6.3 percent to 5.8 percent, primarily due to increased expenses.
The earnings per share (EPS) were reported at R4.92, which fell short of analyst estimates by 3.5 percent. While revenue aligned with expectations, the cost of sales, which amounted to R5.54 billion ($300 million) or 67 percent of total revenue, significantly impacted earnings. The most substantial operating expense was General & Administrative costs, which totaled R2.05 billion ($111 million), accounting for 91% of total expenses.
Segment Performance
A contributor to the company’s revenue was the RPI: Industrial segment, which generated R4.87 billion ($263 million), representing 59 percent of the total revenue. This segment’s strong performance showcases its role in the company’s overall financial health.
The company forecasts an average annual revenue growth of 7.5 percent over the next three years, outpacing the 4.5-percent growth forecast for the Global Trade Distributors industry. This positive outlook reflects Invicta’s strategic positioning and robust market presence.
Despite the robust financial performance, Invicta’s shares have seen a slight decline, down 1.4 percent. This market reaction highlights the need for ongoing strategic management to maintain investor confidence and market stability.
In 2023 the company has shown steadfastness in growing its revenue by 8 percent, with sustainable headline earnings per share increasing by an impressive 33 percent. Additionally, dividends to shareholders improved by 11.1 percent, showcasing the company’s commitment to delivering shareholder value.
CEO Statement
Invicta Holdings CEO Steven Joffe commented on the results, stating the company’s ability to grow basic earnings per share from continuing operations by 18 percent despite facing challenges during the financial year. He also highlighted the standout performance of the Singapore-based Kian Ann business, which saw a 58 percent increase in sustainable headline earnings.
The financial results have had a notable impact on key stakeholders, including South African billionaire Christo Wiese. Over the past eight days, Invicta’s share price surged by nearly five percent, climbing from R27.65 ($1.48) on June 20 to R29 ($1.55). This price increase has propelled the value of Wiese’s 19.23-percent stake in the company to nearly $30 million.
During this period, the market value of Wiese’s investment grew by R25.73 million ($1.37 million), from R530.91 million ($28.35 million) to R556.64 million ($29.73 million).
Wiese, a notable shareholder in Africa’s largest retailer, Shoprite Holdings, and Premier Group, has thus seen a boost in his portfolio due to Invicta’s strong financial performance.
