{"id":23677,"date":"2025-03-27T04:39:07","date_gmt":"2025-03-27T05:39:07","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=23677"},"modified":"2025-03-27T05:56:14","modified_gmt":"2025-03-27T05:56:14","slug":"metair-eyes-expansion-into-sub-saharan-africa-following-autozone-acquisition","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/metair-eyes-expansion-into-sub-saharan-africa-following-autozone-acquisition\/","title":{"rendered":"Metair eyes expansion into Sub-Saharan Africa following Autozone acquisition"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

Tawanda Karombo <\/span><\/p>\n

Metair Investments CEO, <\/span>Paul O’Flaherty, said on Wednesday that he expected the company\u2019s newly acquired unit Autozone to contribute 5% to 6% in operating margin and help the firm with its expansion into Sub-Saharan Africa.<\/p>\n

The acquisition of Autozone was among the landmarks for Metair during the full-year to the end of December 2024. Other major highlights for the period included the disposal of Mutlu, with O\u2019Flaherty also extending his tenure by two years.<\/p>\n

The integration of Autozone is seen as pivotal as Metair explores its growth potential in the after-sales auto market of Sub-Saharan Africa. <\/span><\/p>\n

\u201cUltimately we want to see how we will position Autozone in Sub-Saharan Africa. We are looking at East Africa downwards and we are looking to do partnerships and joint ventures,\u201d O\u2019Flaherty told Business Report<\/em> in an interview on Wednesday.<\/p>\n

This comes as the South African auto industry is facing growing competition from imported Chinese auto brands. However, large SA automakers have an added advantage in that they are able to export to overseas markets.<\/p>\n

Domestically, said O\u2019Flaherty, the industry was looking up for support from the government as it is a big employer and a vital cog in the country\u2019s manufacturing sector.<\/p>\n

\u201cWe operate in an industry that is well supported by government. The auto indystry is importsnt and is a major employer and we see the industry strengthening local ties,\u201d he said.<\/p>\n

O\u2019Flaherty said the declining interest rates in South Africa in the past year \u201cwas helpful to help people buy<\/p>\n

goods\u201d although purchases of newer vehicles was going down.<\/p>\n

\u201cA number of vehicles in SA are getting older; people are not buying newer vehicles and this is an opportunity for the after sales industry,\u201d explained O\u2019Flaherty.<\/p>\n

Nonetheless, operating conditions during the year to end December \u201cremained challenging largely due to lower production at local OEMs caused by weaker demand from traditional export\u201d markets.<\/p>\n

A shift in market share dynamics due to the infux of imported vehicles, especially from China and India, also worsened the situation.<\/p>\n

Moreover, there were reduced production volumes at one of Metair\u2019s major customers, Toyota South Africa Motors (TSAM), due to engine certication issues in its export markets.<\/p>\n

However, these issues were successfully resolved by TSAM in December, said the company.<\/p>\n

Consequently, revenues in Metair from continuing operations for the year under review declined by 2% to R11.8 billion despite the impact of lower OEM production volumes by TSAM.<\/p>\n

The challenges faced by TSM exposed Metair to an annual volume decline of 28%. However, this volume reduction was offset by improved operational efficiencies, cost controls and price growth across the group.<\/p>\n

Price growth for Metair during the year was mainly a consequence of higher material cost content and complexity, and increased export battery sales. <\/p>\n

Metair\u2019s automotive components business excluding Hesto contributed R7.2bn to group revenue.<\/p>\n

Headline earnings per share on a continuing basis dipped by 9 cents or 9% to 89 cents per share for the period. The delclime in full year earnings for Metair has been attributed to lower proftability in the overall automotive business.<\/span><\/p>\n

Metair\u2019s net debt, including Hesto and associated guarantees, reduced to about R4 billion as at the close of 2024, the majority of which was classifed as short<\/span> <\/span>term.  <\/p>\n

This month, the board of  Metair and its lenders approved a capital restructuring plan aimed at providing the company with \u201ca more sustainable debt structure and appropriately aligned repayment terms to reposition\u201d it for growth and long-term sustainability.   <\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Tawanda Karombo Metair Investments CEO,\u00a0Paul O’Flaherty, said on Wednesday that he expected the company\u2019s newly acquired unit Autozone to contribute 5% to 6% in operating margin and help the firm with its expansion into Sub-Saharan Africa.The acquisition of Autozone was among the landmarks for Metair during the full-year to the end of December 2024. Other major highlights for the period included the disposal of Mutlu, with O\u2019Flaherty also extending his tenure by two years.The integration of Autozone is seen as pivotal as Metair explores its growth potential in the after-sales auto market of Sub-Saharan Africa.\u00a0\u201cUltimately we want to see how we will position Autozone in Sub-Saharan Africa. We are looking at East Africa downwards and we are looking to do partnerships and joint ventures,\u201d O\u2019Flaherty told Business Report in an interview on Wednesday.This comes as the South African auto industry is facing growing competition from imported Chinese auto brands. However, large SA automakers have an added advantage in that they are able to export to overseas markets.Domestically, said O\u2019Flaherty, the industry was looking up for support from the government as it is a big employer and a vital cog in the country\u2019s manufacturing sector.\u201cWe operate in an industry that is well supported by government. The auto indystry is importsnt and is a major employer and we see the industry strengthening local ties,\u201d he said.O\u2019Flaherty said the declining interest rates in South Africa in the past year \u201cwas helpful to help people buygoods\u201d although purchases of newer vehicles was going down.\u201cA number of vehicles in SA are getting older; people are not buying newer vehicles and this is an opportunity for the after sales industry,\u201d explained O\u2019Flaherty.Nonetheless, operating conditions during the year to end December \u201cremained challenging largely due to lower production at local OEMs caused by weaker demand from\u00a0traditional export\u201d markets.A shift in market share dynamics due to the infux of imported vehicles, especially from China and India, also worsened the situation.Moreover, there were reduced production volumes at one of Metair\u2019s major customers, Toyota South Africa Motors (TSAM), due to engine certication issues in its export markets.However, these issues were successfully resolved by TSAM in December, said the company.Consequently, revenues in Metair from continuing operations for the year under review declined by 2% to R11.8 billion despite the impact of lower OEM production volumes by TSAM.The challenges faced by TSM exposed Metair to an annual volume decline of 28%.\u00a0However, this volume reduction was offset by improved operational efficiencies, cost controls and price growth across the group.Price growth for Metair during the year was mainly a consequence of higher material cost content and complexity,\u00a0and increased export battery sales.\u00a0Metair\u2019s automotive components business excluding Hesto contributed R7.2bn to group revenue.Headline earnings per share on a continuing basis dipped by 9 cents or 9% to 89 cents per\u00a0share for the period. The delclime in full year earnings for Metair has been attributed to lower proftability in the overall automotive business.Metair\u2019s net debt, including Hesto and associated guarantees, reduced to about R4\u00a0billion as at the close of 2024, the majority of which was classifed as short\u00a0term. \u00a0This month, the board of\u00a0 Metair and its lenders approved a capital restructuring plan aimed at providing the company with \u201ca more sustainable debt structure and appropriately aligned\u00a0repayment terms to reposition\u201d it for growth and long-term sustainability.\u00a0 \u00a0BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":23679,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/23677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=23677"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/23677\/revisions"}],"predecessor-version":[{"id":23678,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/23677\/revisions\/23678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/23679"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=23677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=23677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=23677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}