KAP forecasts significant earnings decline driven by impairments

KAP Limited expects earnings per share for FY25 to range between a loss of 1.8 cents and earnings of 2.4 cents, a decrease of 104% to 95% from FY24's 43.8 cents.

The decline stems from higher finance costs, lower tax incentives, and reduced EBITDA. Significant impairments were recorded on goodwill and intangible assets of Feltex's aftermarket business, Maxe, and Optix, plus property, plant, and equipment of Safripol's PET plant due to market shifts and underperformance.

The company anticipates modest revenue growth but EBITDA decline of less than 10%.