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The reasons attributed to the slide included a slowdown in the mining sector, continued geopolitical conflicts, and a reduction in consumer demand in its consumer industries’ vertical
Barloworld, in a voluntary trading update, said that its revenue had slid 5% for the four months to January 31, 2024, due to reduced sales volumes in some of its businesses. The reasons attributed to the slide included a slowdown in the mining sector, continued geopolitical conflicts, and a reduction in consumer demand in its consumer industries vertical.
Barloworld is an industrial processing and distribution company with two primary areas of operations such as industrial equipment and consumer industries including food and ingredient solutions.
In its Industrial Equipment and Services vertical, machine sales revenue declined in line with the anticipated slowdown in mining activity. It was made good by the uptick in after-sales activity, resulting in a marginal decline in Equipment Southern Africa revenue of 2% relative to the prior period.
Barloworld said investment in working capital was starting to decrease from the high levels in the 2023 financial year in anticipation of the slow-down in the mining industry. However, planned deliveries in the second half of the 2023 financial year were still being delivered in the first half of the 2024 financial year.
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Ingrain’s (Ingrain is South Africa’s largest manufacturer of starch, glucose, and related products) revenue declined by 5% against the prior period, impacted by a reduction in sales volumes, and lower customer demand in the alcoholic beverages, papermaking, and converting sectors. Export sales were down due to competitive global pricing of starch, compounded by challenges in the Port of Durban.
