Latest news with #R625
IOL News
04-08-2025
- Business
- IOL News
Mpact maintains interim dividend despite lower profits and challenging market conditions
Daily operations at an Mpact recycling plant include the sorting, shredding and packing of material. Some plastics can also be recycled. Paper and plastics packaging group and recycler Mpact's headline earnings fell in the six months to June 30, but it has predicted a much strong second half even though the South African economy was unlikely to improve materially. Image: Supplied South Africa's biggest paper and plastics packaging business and recycler Mpact maintained its interim dividend at 30 cents a share despite lower profit as it is confident of an improved performance in the second half. This was according to financial director Hannes Snyman, who, along with CEO Bruce Strong, was interviewed at the release of the results for the six months to June 30. Underlying earnings before interest, depreciation and amortisation fell by 14.5% to R625 million and operating profit lower by 25.5% to R315m. Headline earnings per share decreased to 93 cents from 128.1 cents. Strong said the lower earnings were primarily the result of persistent and lagging demand in South Africa due to the weak macroeconomic environment, traditionally lower sales in the first half in the plastics business, and product optimisation in the PET conversion and closure plant, which had led to additional costs. He said they continued to face a persistently challenging trading environment. The general economy remained subdued, despite lower interest rates and inflation, while uncertainty across local and global markets negatively impacted business confidence. And while they did not expect to be seriously impacted by higher US import tariffs, there might be secondary impacts further into the future, such as, for example, as it pertains to other South African manufactured exports, said Strong. During the six-month period, good volume growth was realised in containerboard and fruit packaging - these were two sectors in particular, that the group had focused on in its strategy of growing and investing in innovative, higher-margin, and sustainable products. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ But these gains, however, were offset by declines in industrial sales volumes due to portfolio optimisation and depressed consumer demand. Progress on capital projects continued. At the R1.3 billion upgrade at the Mkhondo mill, commissioning of the sodium lignosulphonate (SLS) plant was completed, and the pulp mill upgrade was in its final stage of construction. The pulp mill would be commissioned in the third quarter of this year, said Strong. Thereafter, several months would be required to optimise both plants to reach design specifications and conduct SLS customer trials. In the first half, the paper business was impacted by the global cyclical downturn in the paper industry, which led to lower margins, as selling prices decreased more than input costs, particularly due to higher local recovered paper prices. Local and export containerboard volumes grew due to the competitive position of the Felixton paper mill. Fruit sector demand was up, with good growth in plastic crates and citrus cartons partially offset by lower sales volumes in banana and avocado cartons. 'We anticipate continued growth in the agricultural sector in the second half,' said Strong. The industrial market remained weak, impacting the Springs mill, the Paper Converting business, and beverage crates. The FMCG Wadeville's volume fell significantly following expiry of two supply contracts with a major customer. Paper business increased 6.9% to R5.4bn, due to a 5.9% increase in sales volumes and a 1% increase in average selling price. Gross profit was in line with the prior period. The Recycling business increased collection volumes. Recovered paper prices were up significantly due to continued export demand, especially from India. Paper Manufacturing increased containerboard sales volumes by 20.3% following interventions at the end of 2024 to increase exports and displace imports. Cartonboard sales volumes from the Springs paper mill fell by 9.5% due to subdued local market conditions and import competition. The Springs mill took 15 days of commercial downtime in the current period to manage stock levels. In addition, the mill incurred 18 days of downtime due to external utility supply interruptions. Revenue in the Plastics business decreased by 14.7% to R936m. The group expected an improved full-year result from the Plastics business compared to the prior year. Visit:
TimesLIVE
07-07-2025
- Automotive
- TimesLIVE
Stellantis bets on €17,000 Fiat 500 hybrid to revive ailing Italian output
Fiat aims to manufacture more than 100,000 units per year of its new hybrid 500 small car, a model parent Stellantis bets on to revive its ailing production in Italy, the brand's head Olivier Francois said on Friday. Stellantis, created in 2021 from the merger of Fiat Chrysler and France's PSA-Peugeot, last year manufactured 475,000 vehicles in Italy, from more than 751,000 in 2023, with car production down 46% to its lowest since 1956. That was due to a mix of factors including low market demand, in particular for electric vehicles (EV), growing competition from Asian manufacturers and plants reworking for new model launches. "That's the 500 for real people, the pragmatic 500," Francois said during a media preview of the car, when some prototypes were shown to press. The new hybrid 500, to be manufactured from November in the Mirafiori complex in Turin, Italy, along its existing fully electric version, will cost €17,000 (R354,623), Francois said. It will feature a 12-volt lithium battery. The automaker plans to produce 5,000 units this year, he said. Production of the 500 EV, which costs almost €30,000 (R625,996), amounted to only 25,000 units last year, with Mirafiori suffering several stoppages due to low demand and workers put on furloughs. The Fiat CEO said the brand has plans to introduce an upgraded and more affordable version of the 500 EV in 2027, with a targeted selling price of "€20,000 or even less", mainly thanks to batteries that will be made in-house. Stellantis is also working on the new generation of the 500, expected around 2030, to be produced in Mirafiori. "We're designing it. It will be electric and also hybrid depending on regulation and market response in coming years," Francois said.
IOL News
13-05-2025
- Business
- IOL News
The boardroom mirror: culture, candour and collective accountability
The boardroom thus acts as a mirror, reflecting the true culture, candour and collective accountability of an organisation, and revealing what is nurtured or neglected at the highest level. Image: Freepik Nqobani Mzizi Imagine a boardroom where every agenda item is met with swift approvals and diplomatic silence. The minutes are clean, the structures are in place, and everyone appears to be doing their job. Yet beneath the surface lies a more uncomfortable reality: challenge is avoided, and leadership is reluctant to confront hard truths. This is groupthink in its most dangerous form, where the desire for harmony overrides critical thinking and dissenting voices self-censor to preserve boardroom 'peace'. In such a setting, governance failure doesn't arrive with a bang. It creeps in quietly, wearing the mask of order. Board culture is often invisible until it's tested. It doesn't reside in policy documents but in tone, trust and how questions are asked, or silenced. It reveals itself in moments of discomfort: when decisions are hard, stakes are high and consensus isn't convenient. Governance, then, is not simply about compliance or committees; it is about courage. The courage to question, to act. The boardroom thus acts as a mirror, reflecting the true culture, candour and collective accountability of an organisation, and revealing what is nurtured or neglected at the highest level. Two recent case studies, Daybreak Foods and ArcelorMittal South Africa, underscore this point. They reveal how governance plays out not just in form, but in posture. Daybreak Foods (Daybreak), a poultry producer funded by the Public Investment Corporation (PIC), has become a flashpoint in debates on ethical leadership and accountability. Acquired in 2015 for R1.5 billion, it has faced persistent governance challenges. Between late 2024 and early 2025, Daybreak's financial distress escalated, leading to defaulting on loans and failing to pay suppliers. In February 2025, the PIC approved a R250 million funding facility aimed at stabilising operations and restoring the business. The funds were not fully disbursed until May 2025, despite the gravity of the situation and repeated pleas by management. Prior to this, internal restructuring was initiated under the former CEO, who, along with other executives, resigned in frustration as operational strain intensified and financial relief was delayed. The governance failure unfolded not overnight, but in slow motion, most recently resulting in the culling of 350 000 birds by the NSPCA due to severe animal welfare failures, protests by unpaid workers and government intervention to assess the impact on public funds. As if things could not get any worse, it is reported that the board chairperson has abruptly resigned shortly after receiving a R625 000 payment – a move that has sparked further controversy amid the crisis. The board's role has been heavily scrutinised, despite its late or insufficient attempts at governance reforms (including appointing new non-executive directors and establishing whistleblowing mechanisms). Despite early warnings, it failed to prevent the crisis, maintain leadership stability or adequately manage animal welfare risks. And more fundamentally, did the board respond with the urgency the situation demanded, or did it move at the pace of bureaucracy while the business burned? As a shareholder, the PIC also cannot be absolved. Their sluggish response raises questions: was it navigating internal bureaucratic processes or simply failing to act? Governance does not only live in boardrooms; it lives in shareholder relations too. Contrast this with ArcelorMittal South Africa (Amsa), which has also faced immense strain –declining steel demand, rising input costs, logistics bottlenecks and unreliable electricity supply. In late 2024, Amsa announced it would place its long-steel operations under care and maintenance, affecting over 3 000 jobs. The decision was not taken lightly. It was the result of board-led scenario analysis, cost reviews, stakeholder consultations, and clear-headed assessments of market realities. What stands out is not the pragmatic yet harsh outcome, but rather how the board carried out its duty. They did not shield themselves from discomfort. They communicated transparently with shareholders, the government and unions. They acknowledged the gravity of the closure and the economic consequences. And they took public ownership of the decision. Of course, the board was not insulated from criticism. No leadership body is. But their conduct illustrates a fundamental principle of governance: when the path is unclear, courage and transparency are non-negotiable. Amsa's board could not rescue the market, but it did demonstrate what it means to govern under pressure; to engage, to weigh trade-offs and to lead through uncertainty. This posture – visible, engaged, and accountable – is what sets Amsa's governance apart. While Daybreak's crisis unfolded amid leadership silence, internal fracture and delayed capital, Amsa's board projected alignment, forthrightness and collective responsibility. Neither case is perfect, since perfection is not the measure in governance. The standard is integrity, responsiveness and stewardship in action. Candour, therefore, is not about confrontation, but about clarity. It is the ability to say what needs to be said, even when it is unpopular. It's the board member who names the blindspot. The chair who invites dissent. The executive who tells the truth early, before the crisis escalates. Collective accountability, too, matters deeply. Governance is not a spectator sport. Directors can't simply say; 'We weren't informed'. Good boards ask the hard questions before headlines are written. They view silence not as safety, but as risk. Groupthink thrives in these silences, mistaking unanimity for unity and compliance for commitment. Ultimately, what unfolds in any organisation reflects what is tolerated or ignored at the top. Culture is not a buzzword. It is the practical expression of values in everyday decision-making. And boardroom culture either inoculates a company against failure or quietly enables it. So, as this weekly conversation continues, I challenge every director reading this to ask: Does your boardroom encourage truth-telling or just agreement? Are you building a culture that surfaces risk or buries it? When crises emerge, does your board lead decisively or freeze behind formality When ethical fault lines appear, do your directors walk together or fracture underpressure? Because the boardroom is not merely a chamber of record. It is a mirror. And in it, everydecision, delay, and silence is reflected, not just back to the board, but to the public, theshareholder, and the legacy you will leave behind. Nqobani Mzizi is a Professional Accountant (SA), Cert. Dir (IoDSA) and an Academic. Image: Supplied Nqobani Mzizi is a Professional Accountant (SA), Cert. Dir (IoDSA) and an Academic. BUSINESS REPORT
IOL News
12-05-2025
- Business
- IOL News
PIC seeks stability for Daybreak Foods as board faces crisis
The PIC charged that the board and management of Daybreak Foods remained responsible and accountable for the company's operations and finances. Image: File Banele Ginidza The Public Investment Corporation (PIC) said on Monday that it was considering various options to bring stability to the embattled State-funded poultry producer, Daybreak Foods. This comes as the PIC is engaged in ongoing talks with the Daybreak board of directors in the aftermath of a slplit that has seen the board chairperson leave reportedly after securing a R625 000 sitting allowance package. This is as the PIC over the weekend allocated a requested further R74 million to Daybreak, initially earmarked for capital expenditure, in a bid to address the company's immediate liquidity needs, which includes outstanding salaries for employees for the month of April 2025, feed supplies and specific essential operational expenses. The PIC charged that the board and management of Daybreak Foods remained responsible and accountable for the company's operations and finances. The laregst asset manager in Africa said it was strengthening the board and assisting it to strengthen management to help to bring stability to the company and to resume normal operations. "Daybreak's leadership is tasked to develop and implement a turnaround strategy and a credible turnaround plan to ensure long- term sustainability and growth, including how the company intends to avert job losses and safeguard the welfare of the livestock," said PIC spokesperson, Adrian Lackay, adding that any further outcomes will be communicated when approved. Tshepo Makhene, head of projects at the South African Clothing and Textiles Union (SACTU), said labour has had difficulty accessing Daybreak's management since the breakout of news that the board chairperson Bojane Segooa and the Chief Financial Officer (CFO) had resigned with immediate effect over the weekend. "There has been nothing happening today. We are hoping it is because the processes to release the finds for the workers salaries and feed for birds," Makhene said. "It is difficult to get people to engage with the executive after the CEO and CFO resigned. We are not sure if the workers have been paid yet but if they are kept in the dark, they will riot again." This is as the National Society for Prevention of Cruelty to Animals (NSPCA) returns to court on Tuesday where Daybreak will need to explain why the relief should not be made final. The NSPCA obtained an order on Friday, which instructed Daybreak to immediately stop all inhumane culling methods, provide adequate, species-appropriate feed for all birds, cease all breeding and placement of chicks or birds at any affiliated facilities and to provide a timeline and strategy to address and resolve this ongoing crisis. The NSPCA said last Wednesday it found a catastrophic welfare emergency currently unfolding at two of Daybreak's breeder farms in Bela-Bela and Mookgopong, with about 600 000 birds at immediate risk of starvation, suffering from cannibalism, injuries, and prolonged neglect due to insufficient feeding and inhumane culling practices. Visit:
Daily Maverick
11-05-2025
- Business
- Daily Maverick
NSPCA secures urgent court order while Daybreak chair flies coop with R625,000 payout
The collapse of state-owned poultry producer Daybreak Foods took a new turn this weekend as board chairperson Bojane Segooa resigned abruptly after securing a R625,000 payout, just as courts ordered the company to stop its mistreatment of nearly 600,000 starving birds. On Saturday, 10 May 2025, the NSPCA obtained an urgent interim court order from the Gauteng High Court in Johannesburg compelling Daybreak to stop inhumane killing practices and provide adequate feed to 594,000 starving breeder birds at farms in Bela-Bela and Mookgopong. 'This is not just a failure of farming practices – it is a collapse of basic ethical standards,' said senior inspector Nazareth Appalsamy. 'The breeder birds are not only starving, they are suffering immensely.' The court order, which followed a whistle-blower tip-off on Wednesday, 7 May, confirms that Daybreak: Deployed untrained workers to kill birds by swinging them by the head; Failed to disclose conditions at remote farms despite prior interventions; Ignored earlier warnings, leading to preventable mass suffering. The NSPCA is returning to court on Tuesday, 13 May 2025 to make the interim relief permanent and is preparing criminal charges under the Animals Protection Act. Feathers fly in C-level suite The decision by Daybreak board chair Bojane Segooa to resign amid a strike by unpaid workers on Thursday, 8 May, as reported by TimesLive, – reportedly blindsided board colleagues already grappling with a spiralling crisis involving starving livestock and an organisation on the brink of liquidation. Her resignation came shortly after she had demanded R1.2-million in board fees, which then led to internal conflict and the resignation of CFO Aubrey Dali after she stripped him of his powers when he refused to authorise the payout. Despite resistance, Segooa ultimately received a payment of R625,000 before her hasty exit. Sources close to the board describe her exit as 'strategic abandonment' as the remaining three board members have opted to forgo their fees 'in good conscience'. Segooa's exit follows the February 2025 resignation of CEO Richard Manzini and the entire executive team, who left after the PIC failed to promptly release approved funding. However, insiders say the company was already 'technically insolvent' as early as 2016, just months after its acquisition. Daybreak's failure is becoming a case study in one of the most significant investment collapses in the Public Investment Corporation's (PIC) recent history. What began as a 2015 BEE-backed acquisition of Afgri Poultry, funded by the PIC to the tune of R1.19-billion, has spiralled into a humanitarian, animal welfare and financial disaster with at least R1.44-billion in public funds now at risk. PIC acquisition was not the trigger for chicken war… Despite the timing, the PIC's 2015 acquisition of Daybreak Foods did not cause the so-called 'Obama chicken war'. This term refers to a long-running trade dispute between South Africa and the US over American poultry imports, not local investment deals. The background: For more than 15 years, US chicken (especially bone-in pieces) was blocked from South Africa due to anti-dumping tariffs. In 2015, tensions escalated during negotiations over Agoa (African Growth and Opportunity Act), which gave SA duty-free access to US markets. Key moments: June 2015: PIC buys Daybreak Foods. At the same time, US and SA negotiators reach a poultry deal where SA agreed to accept 650,000 tons of US poultry exports. November 2015: After several delays, President Obama threatens to revoke SA's Agoa benefits if poultry access isn't resolved. January 2016: US sets a March deadline for compliance. February 2016: SA meets final conditions – US poultry begins entering the market. Bottom line: The 'chicken war' was about trade access and tariffs, not Daybreak. The PIC's purchase was a domestic investment, not a trigger for the dispute. Workers still unpaid, under fire Roughly 3,400 workers remain unpaid for April. Some are now homeless or unable to feed their families. On Tuesday, 6 May, protesters seeking answers were reportedly met by police who fired rubber bullets. Workers say UIF and provident fund contributions have not been made and they have not been provided with the necessary documents to claim temporary relief. Management has offered no clarity on backpay, business rescue or termination procedures. The Department of Labour has intervened and is exploring enforcement and compliance mechanisms. PIC steps in In a statement shared with Daily Maverick on Friday, 9 May 2025, the PIC confirmed that it had 'allocated a requested R250-million facility, R176-million of which was provided in February 2025.' It added that a further R74-million, originally intended for capital expenditure, had been repurposed for immediate operational support. 'The R74-million will now be allocated to provide immediate working capital, to address the company's immediate liquidity needs, which include: Outstanding salaries for April 2025; Feed supplies to prevent further starvation and cannibalism; Essential expenses necessary to avoid liquidation.' The PIC said Daybreak's board and management 'remain responsible and accountable' for the company's operations. It is 'assisting the board to strengthen management to bring stability' and has instructed leadership to implement a 'credible turnaround plan to ensure long-term sustainability and growth'. Department of Labour — 'We are concerned' The Department of Employment and Labour expressed alarm on Sunday at reports of Daybreak's collapse, noting that the company was funded through PIC investments made on behalf of both the Compensation Fund (CF) and the Unemployment Insurance Fund (UIF). 'As funds are mandated to safeguard and grow the financial resources intended to benefit workers, the CF and the UIF are committed to ensuring that all investments made on their behalf align with their investment policies and deliver sustainable, long-term returns,' the department said. A spokesperson also confirmed that the department is 'engaging with the PIC to seek clarity on the status of this investment' and will take 'appropriate measures to protect the interests of stakeholders and ensure accountability'. DM
