Hudaco released its annual results for the year ended 30 November 2020 on 21 January 2020. Group revenue declined by 6.7% to R6.3bn (2019:6.7bn). Headline earnings per share were down 22.5% to R10.05 per share, and the board declared a final gross dividend of R4.10 per share (2019: R4.10 per share).
Consumer-related products made up 54% of Hudaco’s sales and 67% of operating profit. MiRO, a distributor of wireless, networking, VoIP and IP video products, had an outstanding second half due to increasing demand for wireless and fibre home connectivity and video conferencing.
The company’s business model, principally the sale of replacement parts and its financial characteristics (high margin and strong cash flows), makes Hudaco resilient. Therefore, so long as there is no further regression arising from the pandemic, the group appears to be offering value at current levels.
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