Governed by the volatilities of the rand, IT group Mustek (MST) reported a decline in diluted headline earnings per share from 36.20 cents to 13.40 cents for the six months ended December.
Revenue increased by 20.9% to R1.964 billion and the gross profit percentage increased to 14.7% (31 December 2010: 14.4%). Included in profit from operations is R62.9 million relating to realised and unrealised foreign exchange losses (31 December 2010: R14.7 million foreign exchange profits).
“A significant portion of these losses will be recovered when the related inventory is sold and by settling certain foreign creditors at lower levels than the R8.10 used at 31 December 2011 to revalue foreign creditors,” the company stated.
Mustek grew its revenue by 59.8% after adding new products and a renewed focus on its customers ensured growth in all sectors.
“Management has continued to meaningfully extend its initiatives in employment equity, skills development and corporate social investment during the period. The Group is committed to a process of further transformation and economic empowerment of its stakeholders, such that an acceptable balance between the operatives and commercial benefits of such a process can be achieved, thereby ensuring the sustainability of the group in a competitive market sector,” Mustek said.