Hulamin has made a strong recovery in the first half of the current financial year after the US tariff on aluminium and a plant revamp led to a sharp decline in earnings last year.The group on Monday reported operating profit from continuing operations more than doubled in the six months to end-June to R395.4m from R164.5m a year ago. HEPS soared to 79c from 14c as the group benefited from high metal prices.The group said the strong operational performance came after most of the operational challenges experienced in the second half of 2025 were resolved. Its core operations have stabilised and are ramping towards the upgraded plant’s design run-rate. Rolled product volumes of 85,000 tonnes reflected the continued operational recovery, it said.“The successful commercialisation of our wide-canbody expansion across our customer base, together with the continued execution of our portfolio optimisation strategy through the disposal of our non-core businesses, positions the group well for the future,” it said.The disposal of non-core operations has unblocked about R100m in working capital. The proceeds from the disposals will be applied to reduce debt and strengthen the balance sheet. The disposal of Hulamin Extrusions became effective on July 1 and the transaction is largely complete. Cash proceeds of R10m have been received, with a consignment stock agreement for up to R100m in effect. The remaining disposal proceeds are expected to be realised during the second half.The sale of Hulamin Containers’ operating assets is complete and the proceeds for the equipment have been received, while the land and buildings are in the process of being transferred. However, normalised headline earnings, which include an adjustment for metal price lag and other restructuring costs, were 62% lower at R30m. The decline was primarily due to the stronger rand against the dollar, an unfavourable sales mix as can-end volumes remained operationally constrained into the first quarter of 2026, and continued pressure on local can-end pricing. These headwinds were partially offset by improved cost control and stronger trading conditions in the core canbody and heat-treatable plate product streams, the group said.Overall headline earnings were R245m compared with R43m a year ago, benefiting from higher metal-price-lag gains on rising dollar LME pricing, partially offset by one-off non-trading items relating mainly to group operational restructuring aligned to restabilising performance.No interim dividend was declared.“While first-half earnings remain below the comparative period, the substantial improvement in operational performance from the second half of 2025 provides a solid foundation for improved financial performance in the periods ahead,” the group said.Business Day