Nu-World, the branded consumer goods importer, assembler and distributor with subsidiaries in Australia, Brazil, Dubai and Hong Kong, said yesterday that attributable profit fell 5.3% to R31.49 million in the six months to February 28.
Total revenue for the group that deals in durable products that includes appliances large and small, consumer electronics and electric scooters, fell 2.8% to R969.53 million. Headline earnings per share fell 5% to 147.1 cents from 154.9 cents. Net asset value increased 4.8% to 7 258.3 cents.
Its directors said sales came under pressure locally, however international sales managed to show a 6.6% growth in turnover. Margins locally declined due to increasing cost pressures, high interest rates, high shipping costs, devaluation in the rand, load shedding and fuel costs.
Business confidence continued to remain subdued, causing downward pressure on sales volumes. Overall, lower sales volumes and higher input costs have had a marginal adverse effect on profitability.
Offshore operations showed a 6.6% increase in revenue and a 5.3% increase in after tax income. The increase in revenue was mainly due to opening new markets and expansion in existing markets.
Profitability was maintained despite tough competitive trading conditions. The directors were proactively working to increase market penetration in many regions, and have appointed additional sales and marketing personnel in these areas.
BUSINESS REPORT