Logistics and supply chain leader Imperial Logistics has increased its six months’ revenue by 26% to R8 billion and has announced that R1 billion of new business contributed to a pleasing set of interim results.
Commenting on the excellent performance, chief integration officer Cobus Rossouw says that it is especially pleasing that their businesses in South Africa have delivered impressive revenue and profit growth. “These outstanding interims are founded on exciting local developments that have enabled Imperial Logistics to successfully expand our capabilities and enter new industries in South Africa.”
The division’s R1 billion worth of new business includes contracts with a number of blue chip clients representing sectors ranging from FMCG and petrochemical to automotive.
Through last year’s consolidation process, Imperial Logistics rationalised some contracts and services, and Rossouw notes that this has also had a positive impact on the quality of revenue. “We have simplified our business and honed in on our capabilities, in order to better meet customers’ requirements,”he explains.
The acquisition of managed logistics company KWS Carriers similarly boosted Imperial Logistics’ ability to deliver comprehensive supply chain solutions to the mining and industrial sectors. Imperial likewise entered the pharmaceutical space with the acquisition of Imperial Health Sciences, one of Africa’s leading pharmaceutical and healthcare supply chain service providers.
The division’s business in the rest of Africa continues to enjoy strong growth, Rossouw reports, with the bulk of revenue growth coming from the consumer product distributorship in the CIC Group. “Our ‘Rest of Africa’ revenue now makes up 25% of Imperial Logistics’ total African business. Distributorships have achieved 20% revenue growth as they continue to penetrate the market and gain new contracts.” The acquisition of 49% in MDS in Nigeria has further contributed to earnings. “We remain focused on extending our African footprint,” he explains.
Also adding to a very positive half-year is the fact that Imperial Logistics has not had any industrial action to contend with.
Rossouw is upbeat about Imperial Logistics’ performance for the next six months. “We anticipate continued revenue growth as recently fulfilled contracts come to fruition, and with possible acquisitions to further expand our capabilities,” he concludes.