Press releases

Barloworld delivers strong results boosted by a focus on strategy execution and capital allocation

21 November 2022
Performance in prevailing operating environment proves business resilience; confirmation of unbundling Avis by way of listing

Financial highlights for the year:

·     Group revenue increased 9.5% to R49.2 billion compared to the prior year

·     Revenue from continuing operations up 15.4% year on year to R39.4 billion

·     Group operating profit improved 32.2% to R5.6 billion

·     Operating profit from continuing operations of R3.7 billion, up 12.8%

·     Group operating profit margins improved to 11.4%

·     Group EBITDA of R7.7 billion, increased by 12.4%

·   Group HEPS up by 48.2% to 1771 cents; HEPS from continuing operations improved 16.0% to 1096.3 cents

·     Enhanced group ROIC of 16.9%

·   Ordinary final dividend of 295 cents per share and special dividend of 550 cents per share declared, bringing the total final ordinary dividend per share for the year to 460 cents and a total final special dividend per share for the year to 550 cents per share.

Johannesburg – Barloworld Limited today announced its annual results for the year ended 30 September 2022. The group delivered impressive and improved results, benefitting from resilient performances across its underlying businesses.

Commenting on the results, Group chief executive officer Dominic Sewela said: “I am pleased with the strong set of results we have delivered. As a result of our promise to deliver against our strategy and to focus on capital allocation, Barloworld continues to create value for its shareholders.”

Operational Performance


The operating environment across our markets remain challenging. Covid lockdowns in China, the Russian-Ukraine war and imposed sanctions added renewed pressure on existing supply chain disruptions, logistics issues and product shortages. Delivering improved results while navigating macro challenges beyond our control attests to the group’s business resilience.

Operating profit from core trading activities increased by 12.8% to R3.7 billion compared to the prior year, supported by growth in revenue and our decisive actions to contain costs. Group operating profit margin and EBITDA increased to 11.4% and 15.7% respectively.

The Industrial Equipment and Services business performed well despite several headwinds. Equipment southern Africa’s robust performance was mainly driven by a 34.4% growth in machine sales, reporting a 19.9% revenue increase to R21.8 billion and a record return on invested capital of 22.8%. Despite the Russian war, Equipment Eurasia produced satisfactory results with revenue of R10.7 billion, in line with the prior year.

Our Consumer Industries business, Ingrain, continued to outperform initial expectations. Delivering an impressive 34.6% revenue uplift, compared to the 11 months in the prior period, translated into an operating profit margin of 12% and an EBITDA margin of 16.4%. Good sales volumes and higher international starch and glucose prices contributed to its performance.

Revenue from other segments increased by 13.1% to R941 million, largely driven by improved rental income in the Khula Sizwe business which was offset by a 5.9% decrease in revenue from SMD and Crownmill.

Progress against our strategy


We have delivered on our strategy of actively pivoting our portfolio towards defensive, relatively asset light and cash generative businesses in our chosen verticals of Industrial Equipment and Services and Consumer Industries.

During the year, we exited our investments in Logistics and successfully concluded an exit of all the businesses related to the Transport division. The group also took a decision to close the nonprofitable Global Solutions business (which was a division within the Supply Chain Solutions business) and concluded the sale of the remaining Warehousing and Distribution business pending regulatory approval.

Today we also announce our intention to unbundle and separately list the Car Rental and Leasing business on the Johannesburg Stock Exchange.



The group will continue to focus on delivering against its strategy and growing our core businesses in our chosen verticals.


Despite anticipated headwinds in the short-term resulting from inflationary pressures, we are confident that Equipment southern Africa is well-positioned to sustain growth in the long term due to a growing demand for infrastructure development and increased mining activity in support of the energy transition to zero carbon emissions.


Managing the risks and exposures for Equipment Eurasia continues, with a strong focus on addressing the needs of our employees through a very uncertain and challenging period while agility and adaptability remains a priority. Measures are in place to reduce costs and right-size working capital in line with expected declines in revenue, while maintaining excellent customer service.


The latest maize production estimate suggests there will be sufficient crops to meet domestic demand. The higher international maize prices, sustained by the ongoing war between Russia and Ukraine and the fluctuating local currency, are expected to support higher local maize prices going forward. Ingrain continues to invest in resources to support the growth of the Consumer Industries business in line with the group’s strategy.