Hudaco: Feast on the divvy while SA gears up for growth

Business

Hudaco: Feast on the divvy while SA gears up for growth

Lean, well-managed importer and distributor is perfectly placed for a broad-based economic upswing

Chris Gilmour

With its results largely dependent on how well or poorly the SA economy is performing, Hudaco Industries (https://www.sharenet.co.za/v3/quickshare.php?scode=HDC) is often seen as an economic bellwether. For it to have reported positive earnings growth for the year to November 2019 in such challenging times speaks volumes about its resilience and highly disciplined management.

Hudaco’s main business is importing and distributing branded automotive, industrial and electronic consumer products. It is heavily dependent on SA’s GDP growth rate and the rand-dollar exchange rate. 

The SA economic outlook remains poor for at least the next two years and prospects for the rand are bleak. Under such circumstances, management will need to focus even harder on factors it can control, such as costs. However, as a lean operation Hudaco is well placed to benefit from any material upturn in the SA economy...

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