Strategic objectives

Afrox’s four strategic objectives remain:

Maintain and grow profitability and operating performance

Remain profitable and continue to deliver efficiencies by focusing on ROCE, EBITDA and free cash flow.

Related KPIs

  • ROCE
  • EBITDA
Examples of our strategy in action
  • Afrox continually reviews its customers and suppliers to ensure the right products are supplied at the right prices to the right locations. We view customer service as a key element in protecting the future sustainability of Afrox as a whole.
  • Afrox continues to pursue growth opportunities in consumer-led markets such as gas for fast-food retailers or soft drink carbonation.
Ensure sustainable growth while enhancing competitiveness

Enhance operational effectiveness to maintain competitive edge. Focus on consumer-led growth opportunities (food and beverage, hospitality and healthcare) and maintain stable supply of LPG in all markets.

Related KPIs

  • Revenue
  • BBBEE level
Examples of our strategy in action
  • The Company continues to invest in maintenance and infrastructure upgrades to improve its existing facilities.
  • Security of LPG supply has been achieved through strategic import agreements. Refer to security of supply.
  • Through a focused internal programme, the Company’s BBBEE score improved to a level 4 under the new BBBEE Codes of Good Practice (BBBEE Codes).
Embed advanced performance in areas of safety, health, environment and quality

Further advance our safety culture to the point where it is fully integrated into every aspect of the way we do business and is reflected in reduced major incidents reported (MIRs). Maintain and improve quality while mitigating our environmental impacts.

Related KPI

  • MIR
Examples of our strategy in action
  • The Company applies a best-practice approach to safety that has been personalised in our SHEQ Golden Rules of Safety.
  • Our leaders are responsible for driving a safety culture, yet each employee remains responsible for acting safely and supporting their peers.
  • The Company seeks to safeguard all stakeholders involved in its value chain. This is reflected in several engagements to train suppliers and end users on the safe and correct use of Afrox products.
  • The Company is exploring more efficient ways of utilising technology and internal data to improve the safety of our employees, contractors and assets.
Build a performance culture

Develop our leaders and empower our employees in a way that promotes behaviour that results in excellent performance, adding customer value and providing business profitability.

Related KPI

  • Productivity improvement
Examples of our strategy in action
  • Afrox’s Board members undergo annual evaluations and receive training in areas relevant to the execution of their duties. Our strong corporate governance base sets the tone for ethical and sustainable business operation.
  • Employees are trained regularly to enhance their performance and further align them to the Afrox values. Refer to training information.
  • The Company is committed to transparent communication with stakeholders through a range of channels. Refer to our stakeholder engagement section.

2018 focus areas

In the next financial year, our focus is to:

Area Core activity Intended actions Link to strategy
Enhance customer experience Increase our routes to market Improve the Company’s operating model and regain market presence.
  • Maintain and grow profitability and operating performance
  • Ensure sustainable growth while enhancing competitiveness
  • Build a performance culture
Building future business Increase growth Drive new initiatives in South Africa, develop opportunities for Emerging Africa and increase our exports.
  • Maintain and grow profitability and operating performance
  • Ensure sustainable growth while enhancing competitiveness
Improve operational efficiency Decrease fixed costs Deliver R140 million in cost savings and further enhance our continuous improvement culture.
  • Maintain and grow profitability and operating performance
  • Ensure sustainable growth while enhancing competitiveness
  • Embed advanced performance in areas of safety, health, environment and quality
  • Build a performance culture