JSE-listed Brikor increases profits markedly during Covid-19

Posted On Monday, 31 May 2021 11:59 Published by
Rate this item
(0 votes)

Despite Covid-19, the lockdown and unusually high levels of rainfall in the last quarter of year ended 28 February 2021, manufacturer and supplier of bricks, Brikor Limited (JSE: BIK) substantially increased profit after taxation to R12,0 million (2020: 1,5 million) and gross profit to R65 million (2020: R62,5 million).


The group generated positive cash flows from operations as a result of phasing in production, savings in variable costs during levels 4 and 5 of the lockdown, as well as strict cost-saving initiatives.

Says Garnett Parkin, Brikor CEO, “From August till December 2020 revenues were the highest we have seen in the last five years. Brikor is a particularly resilient business and this is illustrated by the fact that the business produced such remarkable results during the pandemic. We had stock on hand before the lockdown and this had a positive effect after the hard lockdown was lifted.  We are on the lookout for expansion opportunities after acquiring a 40% shareholding in Zingaro Holdings in March this year, which provides multi-product road transportation services for bulk commodities. ”

Revenue decreased to R257,9 million (2020: R292,7 million) as a direct result of the bricks segment being closed until the end of April 2020, whilst the group’s coal mining operation, Ilangabi Investments 12 (Pty) Ltd, was able to continue operations at 50% capacity during the initial lockdown. 

Cash and cash equivalents (net of bank overdraft) increased significantly to R15,3 million (2020: R4,0 million). The increase was mainly attributable to the group having had sufficient stock available when Brikor was able to return to operations on 1 May 2020. 

The high levels of rainfall also had a direct impact on sales volumes during January 2021 and February 2021. Gross profit increased to 25,2% for the year ended 28 February 2021 (2020:21,4%), mainly as a result of cost savings and improved efficiencies in both the coal and bricks segments.

The increase in profit for the reporting period was mainly due to strict cost savings as well as a section 43 closure certificate for one of the group’s rehabilitation sites. As a direct result of the closure certificate, the gross closure cost of R8 million relating to the environmental rehabilitation provision, has resulted in a credit to the statement of profit or loss.

The decision to phase in production also resulted in savings on variable costs, specifically during levels 5 and 4 of the lockdown.

No dividends have been declared for the year ended 28 February 2021 or 29 February 2020.







% change





Basic earnings per share (cents)




Headline earnings per share (cents)




Last modified on Tuesday, 01 June 2021 12:13

Most Popular

Strong demand boosts Balwin as it claws back three months of no construction activity due to covid lockdowns

May 18, 2021
The Huntsman 2
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Construction kicks-off at the R500-million Boardwalk Mall

May 17, 2021
Architects presective of the exterior  of the Boardwalk Mall
Flanagan & Gerard Group and Emfuleni Resorts, a subsidiary of Sun International (JSE:…

Growthpoint leverages development prowess to re-imagine La Lucia Mall as a vibrant suburban mixed-use experience

May 17, 2021
Growthpoint Properties (JSE: GRT) is applying its development expertise to unlock…

Successful degearing and continued dividend payments has allowed Investec Property Fund to continue rewarding shareholders

May 19, 2021
Andrew_Wooler_IPF (1)
Investec Property Fund, (“IPF”, or “the Fund”) today announced a resilient set of…

Residential sectional title sales again on the rise

May 27, 2021
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Please publish modules in offcanvas position.