Strong performance demonstrates Mustek’s resilience in tough market

CAPE TOWN – Mustek lifted revenue 11.3percent to R3.01billion in the six months to December 31 due to strong growth in the Mecer brand and new products and services added to the portfolio in recent years.

“The strong trading performance demonstrated Mustek’s resilience and the defensive nature of the markets in which the group trades,” directors said on Friday. The share price fell 4.76percent to R7.80 on the JSE on Friday, before closing at R8.19.

Mustek is one of the largest assemblers and distributors of PCs and computer information technology products in South Africa.

Operating profit was flat at R116.47million. The gross profit percentage was lower over the same period a year before at 14.4percent (15.2 percent), but higher than the 14percent at the 2019 June year-end, mainly as a result of product mix.

Foreign exchange losses were limited to R6.5m (R11.3m), in spite of the volatile rand-dollar exchange rate, due to hedging.