Mustek expects big earnings loss

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Mustek says challenging economic conditions and an extended load-shedding suspension hurt its performance.

Mustek has released a trading statement for the year ended 30 June 2024, warning of significant earnings losses compared to the previous year.

At the same time, it expects basic earnings per share to be between 85% and 95% lower than last year. Mustek attributed the difference between headline and basic earnings per share to an impairment of its investment in Zaloserve .Mustek also said the abrupt and extended suspension of load-shedding hurt its growth in 2024.“The operating environment for the year ended 30 June 2024 was marked by tough economic conditions and cautious market sentiment leading up to the general elections in South Africa,” said Mustek.

To this end, Mustek says it faces a challenging situation as demand for green energy products has plummeted, and it still holds surplus stock at high interest rates.great investment opportunityProtea Capital Management CEO Jean Pierre Verster explained Mustek is a small-cap stock that will strengthen as the local market becomes more positive.

 

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