The company said yesterday in a Stock Exchange News Service announcement that results for the six months to December will be more than 20% higher than a year ago.
Pinnacle's interim results will include two months of earnings from distributor Axiz, which it bought last year for R170.9 million.
Axiz will add around R2 billion to Pinnacle's annual revenue as the distributor turned over R1.8 billion in the year to December 2009. Profit after tax was R18.3 million. Pinnacle said at the time the purchase was announced that it aims to “materially” increase Axiz's profit as a percentage of revenue.
Pinnacle's last set of results, for the year to June, showed revenue of R3.17 billion, and net profit was R141 million. The company has seen compound annual revenue growth of 24% over the past 12 years. Its net profit after tax has grown by 33% on a compounded basis over the same time frame.
For the six months to December 2009, the company reported revenue up 8.2%, to R1.464 billion, and headline earnings were 37% higher, at R62 million.
The company's share price spiked on the back of yesterday's news, before settling slightly to close at R6.89, a 7c or 1.03% gain on the day.
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