Barloworld Limited

Barloworld reported revenue of ZAR41.9 billion, down 7% year over year. Reported HEPS was ZAR10.22 per share, down 12%, while normalized HEPS was ZAR13.98, up 21%. The Group held EBITDA margin at 12.2% and operating profit margin at 9%; normalized EBITDA was up 9%, operating profit from core trading activities was up 3%, ROIC improved to 19%, and ROE was 15.5%. Gross debt was reduced by 29%, floorplans by 27%, and the UK pension fund was fully settled with a final payment of GBP27.2 million / ZAR632 million. For FY2024, management said the final dividend is ZAR3.10 per share, taking the total dividend to ZAR5.20, up 4% year over year. No formal numeric guidance was given for next quarter or full year, but management said FY2025 growth is possible while cautioning that Southern Africa mining may remain subdued, Mongolia activity may moderate from a very strong base, and Russia restrictions will continue to curb activity.

Dominic Sewela framed the year as evidence that Barloworld’s “fix and optimize and grow” strategy is working, pointing to resilient returns, disciplined capital allocation, and a stronger balance sheet. He emphasized that the company has delivered ROIC above cost of capital for several years, returned ZAR16.5 billion to shareholders over eight years, and remained confident in liquidity and strategic execution. His tone was cautiously optimistic, but he repeatedly noted macro, geopolitical, and regulatory headwinds.

Nopasika Lila focused on normalized performance and the impact of non-recurring items, highlighting the $10 million Mongolia earnout and $26.7 million of VT provisions that will not repeat. Excluding those items, she said EBITDA rose 9%, core operating profit rose 3%, ROIC reached 19%, ROE was 15.5%, and normalized HEPS was ZAR13.98, up 21%. She also said net finance costs fell 5.3% thanks to lower gross debt, and that the balance sheet remains solid with assets exceeding liabilities by ZAR16.7 billion, while covenants are comfortably met.

Analysts pressed management on the proposed consortium offer for all shares, but Dominic Sewela said the company could not comment beyond the cautionary announcement. On VT export-control concerns, management said an independent investigator has been appointed and the company plans to submit its report to BIS by 3 March 2025, but declined to provide details before that work is complete. Questions on FY2025 outlook centered on Southern Africa, Bartrac, Ingrain, and Mongolia: management said Southern Africa mining should stay subdued for most of 2025, Bartrac depends on project timing and the regulatory backdrop, Ingrain should benefit from supply-chain improvements over 18-24 months, and Mongolia should still grow year over year even though activity will moderate.