Salungano faces severe headwinds, reports mixed FY2024 results

Salungano Group Limited reported its audited consolidated financial results for the year ended 31 March 2024, highlighting a period of intense operational and financial headwinds. Revenue decreased to R3.65 billion from R4.79 billion in FY23, while gross profit increased significantly to R292 million from R129 million. The company's operating loss narrowed to R309 million, a substantial improvement from the R745 million loss in the prior year.

Loss per share decreased to 34.89 cents from a loss of 168.52 cents in FY23. However, headline loss per share increased to 111.91 cents, up from 58.65 cents in FY23. No dividend was declared for the period, consistent with the previous year. chief executive Robinson Ramaite stated that FY2024 was a defining period, necessitating a comprehensive restructuring to stabilise and refocus the business for recovery.

The 2024 AFS received a disclaimer of opinion due to material uncertainty about the company's ability to continue as a going concern. The auditor also reported identified reportable irregularities to the Independent Regulatory Board of Auditors. Full details are available on the company's website and the JSE's cloudlink.