Revenue growth of 22% over the last six months from R10.9-billion to R13.3-billion along with a 23% increase in operating profit bear testament to Imperial Logistics’ ability to maintain momentum in the face of testing economic times.
Expanding on the company’s interim results, chief business development officer Cobus Rossouw notes that the profit growth resulted in an impressive above-target margin of 6%.
“Despite the tough trading climate, we are clearly winning in many areas,” he comments. “Our strategy to build new capabilities in new regions and new industries continues to pay dividends. Likewise, our commitment to customising our vast experience for the benefit of each one of our customers, in order to most effectively drive their competitiveness, has resulted in significant new business, as well as contract renewals.”
Imperial’s new business won in the period under review encompasses contracts with blue chip clients in industries ranging from food, beverages and tobacco to electronics, paper and petrochemicals.
On the back of several strategic acquisitions, Imperial has achieved dramatic growth in new markets that it has entered, including, most recently, pharmaceutical distribution and bulk commodities.
“Imperial continues to follow its strategy of pursuing growth in new segments in which we have identified opportunities,” Rossouw says, “and through our experience, expertise and resources, we have consistently demonstrated our ability to assist acquired companies in becoming highly valuable businesses.”
Rossouw states that he is cautiously optimistic about Imperial’s performance in the next six months. “Our challenges include the relatively weak economy, customers that are under significant cost pressure and strong competitors. On the upside, however, we are not very exposed to highly volatile industries.”
Expanding on the group’s strategy going forward, he says Imperial Logistics will continue to grow its capabilities in South Africa. “In the rest of Africa, which represents a key gap in the market, Imperial’s strategy remains regional expansion, particularly within the consumer sector,” he says.