Brikor Limited (JSE:BIK) News - Financial results for the six months ended 31 August  2021 - 
Short-form announcement

BRIKOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013247/06)
JSE Share code: BIK ISIN: ZAE000101945
(“Brikor” or the “Company” or the “Group”)

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2021 -
Short-form announcement

FINANCIAL HIGHLIGHTS

                  31 August           31 August
                       2021                2020           Change
                        R’m                 R’m                %

Revenue                152,3              127,8             19,2
EBITDA                  14,6                5,7            156,1
EPS (cps)                1,1               (0,3)           466,7
HPS (cps)                1,1               (0,2)           650,0
NAV (cps)               14,4               10,6             35,8
NTAV (cps)              11,0                5,5            100,0

Note: No dividends have been declared for the six months ended 31
August 2021 or 31 August 2020.

The Group realised a profit after taxation of R9 million (31
August 2020: loss of R1,7 million) for the six months ended 31
August 2021. The increase in profit was directly attributable to
increased demand for product in the Bricks segment as well as
positive returns from the investment in Zingaro of R4,3 million.
Revenue increased to R152,3 million (31 August 2020: R127,8
million) with the gross profit percentage increasing to 21,6% (31
August 2020: 20,4%).

Administrative, distribution and other expenses for the six months
ended 31 August 2021 remained fairly consistent at R27,1 million
in comparison to the six months ended 31 August 2020. This was
mainly due to strict cost savings and stabilised fixed costs.

Major capital investments made by the Group during the reporting
period amounted to R5,6 million of which the majority was for the
upgrade and replacement of factory roofs, buildings as well as an
eating area for the employees.

BRICKS SEGMENT
Revenue derived from the Bricks segment increased significantly by
74,5% to R102,3 million (31 August 2020: R58,7 million), whilst
the gross profit percentage increased to 26,1% (31 August 2020:
14,8%).

The Bricks segment performed exceptionally during the first six
months of the financial year, with factors such as DIY projects,
additions and alterations as well as the informal building sector
contributing greatly to the increase. Adequate planning,
sufficient inventory levels and efficiencies in the production
process have also contributed to the exceptional performance. The
increased revenue and gross profit should, however, be evaluated
based on the relative depths to which the industry plunged during
2020 as a result of the COVID-19 pandemic.

COAL SEGMENT
Revenue derived from the Coal segment decreased by 27,7% to R50,0
million (31 August 2020: R69,1 million), whilst the gross profit
percentage decreased to 12,2% (31 August 2020: 25,2%).

The Coal segment experienced the aftermath of the COVID-19
pandemic during the first quarter of 2021 with significant
pressure on sales prices. The export market is vital to sustain
balance within the Coal segment and the oversupply of coal
products in the local markets added additional pressure on price
and demand for product. During April 2021 product sales, mostly
supplied to the export market, slowed down significantly due to
unreliable infrastructure as well as recent looting in parts of
the country.

SHORT-FORM STATEMENT
This short-form announcement is the responsibility of the
directors. It is only a summary of the information contained in
the full announcement and does not contain full or complete
details.

Any investment decision should be based on the full announcement
accessible from Wednesday, 17 November 2021, via the JSE link and
also available on the Company’s website at
http://brikor.co.za/_webmoduledata/Documents/BIR2021.pdf.

Copies of the full announcement may also be requested by
contacting Joaret Botha by email at joaret@brikor.net and are
available for inspection at the Company’s registered office at no
charge, weekdays during office hours.

The JSE link is as follows:
https://senspdf.jse.co.za/documents/2021/jse/isse/bik/INT21.pdf

17 November 2021
Nigel

Designated adviser
Exchange Sponsors

Date: 17-11-2021 08:30:00
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