Get to know your JSE companies: AECI LTD (JSE: AFE)

AECI released its financial results for the year ended 31 December 2020. Revenue decreased by 2.8% to R24.1bn (FY2019 R27.8bn). Of the group’s total revenue, 44% was generated outside of South Africa. The company reported a decrease of 55% in profit from operations, from R2.3bn (FY2019) to R941 million. The decline in profits was mainly due to the South African government-enforced lockdowns during the first half of 2020.

The COVID-19 pandemic remains the overriding risk given the uncertainty of current and future waves of infection, the availability of vaccines for mass vaccinations and their efficacy, and the time and extent of post-pandemic economic recovery. AECI is a well-diversified company, as can be seen by the company’s resilience during the first half of 2020.

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