At the SOE’s results presentation, Transnet group CFO Nosipho Maphumulo said the state-owned entity’s fortunes were starting to improve.
Transnet group CFO Nosipho Maphumulo recently presented the state-owned entity’s annual financial results for 2023/2024, with group CEO Michelle Phillips.
Nosipho, who took on the role earlier this year, said, “Transnet’s performance for the year ended 31 March 2024, showed improvement when compared to the prior year, in spite of various challenges and the current economic climate.”
In 2024, there is a 11.6 percent growth in revenue to R76.7 billion, compared to 2023, which was at R68.7 billion. The net operating expenditure for the year came in at R54.7 billion, reflecting a 19.2 percent increase from the prior year. The EBITDA margin has also declined by 4.6 percent, reaching 28.6 percent, compared to its 33.2 percent result in 2023.
Despite a recorded net loss of R7.3 billion, mainly due to a provision for litigation costs, Nosipho and her team are optimistic about their next financial year, setting a target of R1 billion for themselves. This is on the back of a recovery plan, which was put into effect on 1 November 2023, for the fiscal years 2023–2024 and 2024–2025.
According to Nosipho, the government’s financial support of the recovery plan has helped to lessen Transnet’s financial difficulties.
In addition, Transnet has partnered with key private sector players in the logistics industry to strengthen their current business segments and is actively pursuing additional growth opportunities.
Within the Southern African Development Community (SADC), Transnet is also actively seeking revenue diversification through regional integration as part of its ESG-related SDGs, according to the company’s annual report.
This effort, Nosipho noted, resulted in a 51.3 percent increase in total cross-border revenue, contributing R3.6 billion to group revenue (up from R2.4 billion in 2023).
