South African aluminium semi-fabricator, Hulamin, has reported only a 2% increase in rolled product volumes for 2024, despite a recovery in market demand. The company, which recently announced plans to sell its Hulamin Containers business unit, revealed that its growth potential has been hampered by operational difficulties.

The company’s financial results showed a sharp decline in earnings. Basic normalised headline earnings per share (NHEPS) fell by 45% to 42 cents, down from 77 cents in the previous year. As a result, no dividend was declared. The NHEPS figure excludes metal price lag and non-trading items.

Hulamin Containers, which manufactures rigid foil containers for catering and household use, was classified as non-core after a strategic review of the company’s investments in 2024. The company said it aims to enhance operational efficiency and cost competitiveness while reclaiming market share.

Commenting on the sale, Chairman Thabo Leeu stated in the company’s integrated report that the transaction is expected to unlock working capital. This, he explained, would allow the rolled products division to streamline its foil product range and focus on the higher-margin export foil segment.

CEO Meganathan Gounder highlighted that while the year began with promising market conditions, challenges remained. The export sector showed significant recovery, but pricing pressures in certain segments, including export can stock, persisted. Meanwhile, domestic demand remained strong, particularly for Can Body products.

However, Gounder noted that operational setbacks, including a fire at the Can End finishing line, disrupted the company’s ability to fully capitalise on the demand recovery in the latter half of the year. Despite this, the company remains committed to its five-year strategy, which includes expanding its Wide Can Body capacity. Phases 1 and 2 of the investment have been completed, and the final phase is expected to be operational by the end of the fourth quarter.

Key priorities for Hulamin moving forward include completing the Wide Can Body plant upgrade, boosting core market segment growth, improving scrap utilisation, and reducing both working capital and net debt.

For the year, Hulamin reported a 1% decline in revenue to R13.64 billion. However, operating profit edged up by 2%, reaching R540.38 million. Local sales made up 55% of the total revenue, with record volumes in can body and plate sales contributing to the company’s performance.