Johannesburg – Despite a tough financial year, a number of South Africa’s JSE top 40 companies managed to turn profits.
Among the top performers were international companies. Fin24 compiled a list of the JSE Top 40s top performing companies for the year, according to net profit.
1. Richemont [JSE:CFR]
Richemont was the best performing JSE Top 40 company for the year, reporting a profit of over R32bn (€2.23bn), according to its 2016 annual report. The Swiss luxury goods company introduced a job-cut plan earlier this year at its Swiss watchmaking business as a result of a drop in Swiss watch exports. Chairperson Johann Rupert also abolished the CEO position in an overhaul of senior management, the biggest since 2009.
READ: Richemont offers to scale back plan to cut watchmaking jobs
2. FirstRand [JSE:FSR]
The financial institution generated a profit of R23bn, according to its 2016 annual report. According to the group’s interim results released in September, profit was reported at R22.4bn, lower than expected as the company embarked on more investments for expansions and loan impairment charges rise.
FirstRand was one of the four major banks in South Africa which closed the business accounts of the Gupta family earlier this year. It was the first of the four banks to disclose that the accounts were closed over suspicions of money laundering.
READ: FirstRand first of the 'big four' to explain Gupta break-up
3. Steinhoff [JSE:SNH]
The international retail holding company reported profits of over R21bn, according to its 2016 annual results report. Recently the company shared its intentions to combine operations with retailer Shoprite.
The two businesses plan to form a new retail entity called Retail Africa. However analysts believe this may impact shareholders, being beneficial to Shoprite’s share price but detrimental to Steinhoff’s.
READ: Shoprite and Steinhoff in merger talks to form retail giant
4. Sasol [JSE:SOL]
The energy and chemical company generated profits over R15bn this year. Despite the falling oil price, the company worked on boosting production volumes. The company has a new R2bn head office in Sandton, known as Sasol Place. Previously the company had 17 offices.
READ: Sasol’s cost-containment strategies yield results
5. Standard Bank [JSE:SBK]
The financial services group reported earnings of over R13bn in its 2016 interim results. The bank recently filed an affidavit to the North Gauteng High Court detailing reasons why it was one of four major banks that closed the accounts of Gupta-owned Oakbay and its related entities. In the affidavit the banks shows that it was pressured by politicians to reopen the accounts.
READ: Standard Bank in bid to block Zuma's Gupta intervention
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