Robust conditions in the building sector have again buoyed building materials supplier Dawn, which reported a 70% increase in revenue to R1,4bn for the six months ended in December.
And while acquisitions in the period helped to boost sales, Dawn also showed strong organic growth of 21%.
Operating profit rose 66% to R161m compared with the corresponding period a year before, and headline earnings increased 54% to 54,16c a share.
Dawn continued its acquisition strategy, buying Isca, Vaal Sanitaryware and DPI Holdings in the period.
The operating margins of the group declined marginally to 11,4% in the period, mainly due to the effect of the acquisitions.
But the acquisitions were profitable and had strengthened Dawn's position with key customers, which would provide a springboard for more growth in the future, the group said.
On a divisional basis, the trading division, which contributed 74% to revenue, saw the benefit of the group's strategy of providing a comprehensive package to customers, with the business's performance exceeding expectations due to improved efficiencies and volume growth.
The division boosted sales 66% and increased operating profit 84% to R99m
The manufacturing division added 50% to revenue and operating profit rose 43% to R61m, which Dawn ascribed in part to the inclusion of new acquisitions, but also to improved factory efficiencies and better integration and co-ordination with its trading division.
Cobra had a record performance because of an unprecedented order book during the period, the group said. Dawn was optimistic on continued strong demand in the building sector.
With increased activity in the commercial property sector, infrastructure development and upgrading picking up the pace, demand for lower- and middle-income housing and strong spending on the refurbishment of homes, the group said it was confident that it would continue to achieve "outstanding" earnings growth in the medium term.
Shares rose 2,5%, or 35c, on Thursday to R13,35 on slim volumes.
