Hulamin delivers resilient 2024 performance, accelerates investment in local can-body market

SOUTH AFRICA – JSE-listed aluminium producer Hulamin has reported an improved performance for the financial year ended December 31, 2024, supported by a recovery in market demand—particularly in the domestic can-body segment—despite facing operational disruptions and global pricing pressures.

CEO Mark Gounder noted a resurgence in demand across both local and export markets, although pricing headwinds in certain export streams, such as cold rolled standards and plate products in the EU, persisted throughout the year.

“Locally, demand remains robust, with strong demand for can body products in particular,” said Gounder.

Hulamin holds a dominant 60% share of South Africa’s can-body stock market and continues to play a key role in the circular economy through its aluminium recycling efforts, including used beverage cans.

The company operates through its Rolled Products and Extrusions divisions, with manufacturing facilities based in Pietermaritzburg, KwaZulu-Natal, and Midrand, Gauteng.

Hulamin reported total sales volumes of 173,167 tonnes, with normalized EBITDA reaching R344 million (US$18.95m)—down from R486 million (US$ 26.78m) in the previous year.

The drop was largely attributed to a fire on its Coil Coating Line 2, which impacted 8,000 tonnes of higher-margin can-end and tab exports.

Despite these challenges, Hulamin achieved an improved sales mix, with 55% of its volumes sold domestically.

Notably, sales of can body products surged to 51,587 tonnes from 38,274 tonnes in 2023, while plate volumes increased to 31,040 tonnes from 24,393 tonnes.

However, the fire incident and other operational hurdles weighed on profitability. Normalised operating profit fell by 22% year-on-year to R378 million (US$20.83m), while net profit attributable to shareholders declined slightly to R246 million (US$13.55m), from R271 million (US$14.93m) the year before.

Basic headline earnings per share (HEPS) decreased by 28% to 64c, and normalised headline profit per share dropped 45% to 42c. No dividend was declared for 2024.

CFO Pravashni Nirghin reported that net debt stood at R1.3 billion (US$71.63m) by year-end, with the net debt-to-equity ratio widening to 35.6% from 24.5% in 2023.

“Our strategy remains unchanged, with liquidity being a critical focus for 2025,” she said.

In response to the fire, the company conducted a comprehensive asset risk assessment and successfully rebuilt Coil Coating Line 2 on time and within budget.

A strategic review of the Extrusions division is also underway, following years of underperformance.

Investment in growth and market share

Hulamin continues to focus on capturing local market share and reducing reliance on imports.

The company is progressing through a three-phase wide can-body expansion project aimed at displacing the 23,000 tonnes per year of wide can-body products currently imported into South Africa.

Seven of the nine local can lines are now designed to use wide-width coils, and Hulamin is installing a 15,000-tonne widebody can line to meet this demand.

The first two phases of the expansion have been completed, with commercial-scale production expected to begin by the end of Q4 2024, followed by a ramp-up period.

Capital expenditure for the year amounted to R569 million (US$31.35m), reflecting the company’s commitment to strengthening its domestic presence and enhancing operational efficiency.

“Our focus remains on the local market, protecting our can stream, and increasing scrap utilisation beyond the current 22%,” Gounder added.

With its eyes firmly set on expanding local capabilities and improving long-term sustainability, Hulamin continues to position itself as a key player in South Africa’s aluminium and beverage packaging value chain.

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