This week, we'll look at five updates that will give us something to smile about in the local market.
Tech Trio: Ultron, Datatek and Lesaka Technologies
Although these companies do not compete directly, they are a reminder that the JSE has a good number of exciting technology and platform businesses.
After cleaning up the group and focusing on areas where it can win by better margins, Ultron has been a story of quite a turnaround. An updated trading statement tells us that HEPS (headline earnings per share) from continuing operations grew between 31% and 37% for the year ending in February. Although the share price is up only 4.6% in the last year, it's important to note that it has almost doubled over the last two years.
Datatek has performed similarly to Ultron over the two years, with the global technology company enjoying a strong period in the year ending February 2026. HEPS jumped between 51% and 58.8% due to excellent underlying performance in Westcon International and Logicalis International. Technology delivery is not usually seen as an exciting point in the value chain, but at the moment it is clearly getting the job done.
At Lesaka, where we have more detailed numbers to work with rather than just trading statements, we've got a fintech and platform business that achieved adjusted EBITDA growth of 45% in the latest quarter. This was driven by net revenue growth of 16%, so the incremental value of the new revenue is highly profitable.
In fact, Lesaka has now passed a turning point. The company has moved from net loss to net profit. If revenue growth continues at a good rate, they should experience rapid growth in net profit.
Lesaka's concern lies in the merchant segment, where net revenue was down 4%. This is not what investors want to see in a growth stock, especially since it is still the largest segment of the group. The good news is that consumer revenue and enterprise revenue grew by 41% and 78% respectively, delivering impressive group results.
Even without taking into account the Bank Zero acquisition (which is the right approach given the uncertainty around the timing of regulatory approval), Lesaka has raised earnings guidance for FY26. The combined focus on adjusted EBITDA and the concept of “beating guidance” tells you that Lesaka is positioning itself as one with a global investor base. This is not the kind of language we are used to seeing from JSE-listed technology stocks.
bright side of the southern sun
After an interim period to September, which was affected by renewals and issues in some African markets where the company operates, Southern Sun performed well in the second half of the year.
A trading statement highlights adjusted HEPS growth of between 17% and 21% for the year to March 2026, a particularly exciting result after adjusted HEPS was flat in the six months to September.
Paradise Sun came back online in the second half of the year, contributing to higher engagement. If we exclude the South African portfolio, we find an occupancy of 64.3% versus 61.9% in 2025. In addition to inbound leisure travel, Southern Sun has enjoyed demand related to major conferences and exhibitions, with the G20 in Gauteng being just one example.
There are several reasons to be concerned about the impact of oil prices on demand. Traveling is becoming increasingly expensive, which is likely to impact inbound passenger traffic and even domestic travel. At least Southern Sun will navigate this period from a strong position, as the balance sheet is in good shape and most parts of the business are performing well.
Beer volume boosts AB InBev
With its share price up 25% this year, AB InBev has rewarded investors who were willing to ignore headlines about declining alcohol consumption. It is a global business with a product range that now includes all types of beer variants, so they are trying to achieve growth by tailoring product decisions to regional tastes.
At least for now, it's working. In South America, beer volumes have hit record levels in countries like Colombia and Brazil, while Mexico (Corona's home market) remains strong. Along with phenomenal growth, Corona is also exporting very well as the beer brand rides the strange wave of value that comes from having the same name as a global pandemic!
Overall, the latest quarter saw a 1.2% increase in beer volumes. The market was expected to see flat or even negative volumes, with price increases taking the company into the green. Instead, the modest increase in volume was enough to send the share price closing 8.3% higher on the day – a serious rise for a company of this size.
One thing to keep an eye on is EBITDA margin, which declined 15 basis points to 35.6% despite higher volumes. Still, with normalized EBITDA of 5.3%, AB InBev may regain its reputation as a defensive play. However this promising turnaround will take more than a quarter to set in the hearts (and glasses) of investors. DM