COMPANY NEWS IN BRIEF

Discovery&#039;s profits jumpSouth Africa&#039;s largest medical scheme administrator Discovery says profits surged by about three-quarters in its year to end-June, boosted as the firm&#039;s key markets exited the emergency phase of Covid-19, while relatively lower prices also helped it carve out some additional market share.Headline earnings jumped 74% to R5.2 billion in the group&#039;s year to end-June, slightly above pre-pandemic levels, with the insurer reporting a tripling of normalised profits in its Discovery Life business to R4 billion, amid healthy new business growth, while provisions also proved sufficient to cover R3.7 billion paid out in Covid-19 claims.The group, however, once again decided not to declare an ordinary dividend, citing global volatility and risks, and in midday trade its shares had slumped 9.77% to R111.12, having now lost more than a fifth in the year to date. "The group has decided to continue our policy of not paying a dividend at this stage, I think our rationale is strong," group CEO Adrian Gore said during an investor presentation. "We are in a Covid period and it is not clear that this period is over."Gore added that the industry was still dealing with numerous knock-on effects such as a spate of resignations, as well as the ongoing health implications of those who contracted Covid-19. There are also a spate of global risks, including possible recessions in major markets, supply-chain disruptions, elevated inflation and the ongoing war in Ukraine. Despite this, the group was cautiously optimistic that the worst of the pandemic was over. -Fin24Mango a step closer to being sold Low-cost airline Mango is one step closer to being sold as its preferred bidder delivered proof of funding, according to business rescue practitioner Sipho Sono.In his latest status report, Sono said the process of trying to sell Mango had progressed "substantially" once the preferred bidder - whose identity has not yet been revealed - had provided the confirmation of funding. The bidder consortium had to provide a bank guarantee for the full purchase consideration, which is also still not known. Mango does not form part of the deal that will see the Takatso Consortium obtain a 51% stake in embattled SAA. Global Aviation, a minority shareholder of Takatso, operates its own airline, LIFT.Mango can, therefore, not resume operations unless it secures an investor to buy and relaunch the airline. Sono indicates he has "engaged extensively" with the preferred bidder to ascertain, among other things, working capital and availability of funds to resume operations, adequate skills to operate an airline, plans for securing aircraft, and route network and expansion plans.The disposal of shares by SAA - which is Mango&#039;s shareholder - requires the state-owned flag carrier to obtain approval in terms of the Public Finance Management Act, approval from the Air Services Licensing Council, and from the Competition Commission. -Fin24Tiger Brands recall products Tiger Brands has recalled some Purity and Elizabeth Anne&#039;s baby powder products."Trace levels of asbestos were detected in test samples of the talc raw material used in these products," the company said in a statement.The affected batch of raw materials does not meet Tiger Brands&#039; strict quality and safety standards," the company said. The asbestos was detected in test samples from a batch of pharmaceutical-grade talc powder used as raw material.The company launched the product recall after consultation with the National Consumer Commission. The financial impact of this recall is not material to the group’s results, JSE-listed Tiger Brands said. But its share price dropped by almost 8% on Wednesday morning.Tiger Brands is working with retailers and wholesalers to remove the affected products from store shelves.The recall does not affect Purity Essentials Baby Cornstarch Powder or any other baby care products under the Purity brand. Last month, US multinational Johnson & Johnson announced that it would stop selling and making talc-based baby powder around the world. -Fin24Sanlam confident despite collusion probeSouth Africa&#039;s largest short-term insurer Sanlam doesn&#039;t expect an industry probe from competition authorities into alleged collusive behaviour to reveal any dodgy practices in its business, but it is concerned about reputational damage.The Competition Commission announced in late August, after some dawn raids, that it was investigating pricing practices at eight life insurance companies, including Sanlam, but no charges have been laid yet.Releasing its interim results to end-June on Thursday, Sanlam said while it hadn&#039;t been given the necessary details to form a view on the matter, it strictly adheres to ethical practices and legislative requirements, as well as putting a high value on the trust of its customers."We believe all pricing practices within Sanlam Life are in the best interests of customers and have robust processes in place to ensure this," it said.The probe comes as SA insurers grapple with issues including rising inflation, the lingering effects of Covid-19 and deteriorating infrastructure, which can bump up vehicle repair costs. However, Sanlam said on Thursday it expects its medium-term growth to be supported as consumers review their policies in the midst of higher general prices.-Fin24Apple&#039;s new iPhones coming at a tough timeApple Inc on Wednesday is expected to unveil a new range of iPhone 14 models and Apple Watches that will test how willing consumers are to upgrade gadgets in the face of inflation and economic gloom.Analysts expect Apple to announce that the latest iPhones can send emergency messages using satellites at the event titled "Far Out" at its Cupertino, California, headquarters. Beyond that, analysts expect a family of iPhone 14 models with incremental upgrades - slightly better cameras, processor chips and, critically for Apple&#039;s bottom line, prices US$100 or more higher than last year&#039;s models.To be sure, the world&#039;s most valuable listed company will also likely keep some older or less advanced models at lower prices, and to date Apple&#039;s relatively affluent fan base has shown more willingness to keep spending despite high inflation. But the new models will be Apple&#039;s sales anchor during holiday shopping seasons in Western markets during a turbulent period. "Apple is not immune to economic weakness," Bernstein analyst Toni Sacconaghi wrote in note to clients.This year&#039;s iPhones may have the ability to send emergency messages through a satellite internet connection when WiFi and mobile networks are not available. The messaging functions would likely be rudimentary, and other companies are working on similar functions. SpaceX founder Elon Musk said last month T-Mobile will use its satellites to connect phones directly to the internet. -Fin24Capitec shares sink despite profit growthShares of Capitec, South Africa&#039;s largest digital banker, slipped almost 7% on Thursday, despite it flagging double-digit earnings growth for its half-year to end-August.Headline earnings per share is expected to rise by between 15% and 18% to as much as R40.67, the lender said in a very brief update, while in morning trade its shares had lost almost 6% to R1 974.53. At the same time, rivals Standard Bank and FirstRand were both up over 1%, while Absa had eked out a smaller gain.South Africa&#039;s banking industry has received tailwinds in 2022 as Covid-19 receded, helping to support a return of corporate lending, while surging inflation has also resulted in a climb in interest rates. This results in the so-called endowment effect, where higher rates can bolster loan repayments.Standard Bank reported recently its headline earnings jumped by about a third to a record R15.3 billion in its half-year to end-June, while Absa also recently reported this measure of profit climbed 28% to R11bn in the same period.Capitec booked just under R4bn in headline earnings during the six months to end-August 2021, up more than sixfold from the prior year, when lenders were battered by the emergence of Covid-19.-Fin24

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