Datatec Ltd Sa Unsp/Adr (DTTLY) Q2 2026 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:05.877 Good morning and welcome to our FY26 interim first half results. 00:00:05.877 -- 00:00:11.363 As per our usual format, I'll be providing a summary followed by the CFO's presentation 00:00:11.363 -- 00:00:16.429 on the financial results and then followed by my operational review of the divisions 00:00:16.429 -- 00:00:20.371 and finally the concluding slides. 00:00:21.154 -- 00:00:23.915 Our results summary. 00:00:24.177 -- 00:00:28.992 Slide 4. We had an exceptionally strong H1 performance. 00:00:28.992 -- 00:00:33.960 All the group's divisions delivered strong year-over-year increases, with higher profits, 00:00:33.960 -- 00:00:37.566 better margins and good working capital management. 00:00:37.566 -- 00:00:42.774 These results translated into a staircase of improvement down the P&L, with 00:00:42.774 -- 00:00:47.903 strong operational leverage. Gross sales grew by 9%, gross 00:00:47.903 -- 00:00:53.197 profit close to 12%, adjusted EBITDA by 22% and 00:00:53.197 -- 00:00:55.399 underlying earnings per share jumped by 43%. 00:00:55.399 -- 00:00:57.262 The 00:00:57.262 -- 00:01:02.147 strong profit improvement and enhanced dividend payout ratio from last year led to a 00:01:02.147 -- 00:01:08.115 significant increase in our interim dividend up from 4.3 to 10 00:01:08.115 -- 00:01:14.540 cents US dollars, an increase of 133%. As seen 00:01:16.505 -- 00:01:21.677 with the reporting of many tech companies, an AI-led generational upgrade 00:01:21.677 -- 00:01:26.726 to more advanced computing is beginning. It is hard to predict how 00:01:26.726 -- 00:01:31.694 long this will take or what impact it will have, but if it's like previous technology 00:01:31.694 -- 00:01:37.019 cycles, it will be evolutionary and take time to mature. 00:01:3...