Billionaire Christo Wiese’s firm finding its fortunes outside South Africa

This was noted in Invicta Holdings’ results for the year through March 2025, which outlined the company’s goals moving forward. 

The goal comes amid what the group described as increasingly difficult local operating conditions, including unreliable power supply, infrastructure deficits, regulatory inefficiencies, and ongoing political and economic uncertainty.

Wiese is well-known for his role in building Shoprite and Pep into household names across South Africa.

According to Forbes’ real-time billionaires list, Wiese is ranked among the wealthiest people in South Africa with a net worth of $1.7 billion (R29.8 billion). 

Wiese was appointed Non-executive Director of Invicta in October 1997 and served as Chairman from October 1997 to April 2000. 

He was re-appointed as Non-executive Chairman in January 2006 and is currently the Chairman of Tradehold Limited and a Non-executive Director of Shoprite Holdings Limited and Brait SE.

“Geographic diversification and the pursuit of sustainable earnings remain core pillars of our long-term strategy,” Wiese said. 

“Our business is inherently defensive in nature, as the distribution and supply of parts, components and consumables is necessary for economic activity.”

Considering this, he added that the company continues to expand into international markets and plans to generate more than 50% of Group income from operations outside South Africa within the next two years.

Invicta Holdings, first listed on the JSE in 1987 as Skirtskip Clothing Limited, has undergone multiple transformations. 

After a series of acquisitions and divestitures, it became known as Invicta Holdings in the 1990s and focused its core business on bearings and engineering-related products. 

Today, it manages a broad portfolio of investments across industrial consumables, auto-agricultural parts, earthmoving equipment components, and capital machinery.

The company has a wide international footprint, operating in 17 countries with manufacturing plants in China and distribution platforms across Europe, North America, Southeast Asia, and Southern Africa. 

Concerns at home

Wiese noted that the company had reinforced its presence in the United States through the launch of a new start-up, KSP.

KSP was established through Invicta’s Kian Ann joint venture and is intended to grow the company’s presence in the US by expanding its distribution of undercarriage machinery alongside the existing KTSU America business.

Invicta has also broadened its footprint in the United Kingdom by acquiring Nationwide Bearing Company.

Wiese highlighted that both of these moves are significant plays to achieve half of the company’s earnings outside of South Africa.

Invicta also disposed of its 100% shareholding in KMP Holdings to its 48.8% joint venture partner, Kian Ann Engineering, and sold a property in Singapore. 

The distribution facility there was relocated to China.

“The strategic disposal of KMP to Kian Ann has aligned our offshore operations, while allowing us to retain an interest in KMP’s future performance,” Wiese noted.

This move resulted in a once-off profit of R222 million, contributing significantly to a 57% increase in the company’s basic earnings per share, which rose to 773 cents from 492 cents in the previous year. 

Revenue was up 6% to R8.11 billion, and operating profit before foreign exchange movements climbed 21% to R765.43 million. 

Net asset value per share also grew 13% to 5,931 cents. Invicta has been active in acquisitions and shareholder value initiatives.

Over the past year, it redeemed all 6.9 million outstanding preference shares and repurchased and cancelled 4.9 million ordinary shares.

Amid its global expansion, Invicta continues to monitor risks at home. 

“The formation of the Government of National Unity (GNU) led to an improvement in market confidence, with a noticeable uptick in activity driving a stronger performance in the second half of the year,” the company said. 

However, it cautioned that long-term structural issues remain. “Political and labour instability and the deindustrialisation of South Africa are major strategic risks,” it warned.

The company also pointed to the closure of major steelmaking operations in 2025 as a significant concern. 

“There is a risk that government interventions to protect local industries could lead to greater production inefficiencies hampering South Africa’s ability to compete,” it said.

Despite these headwinds, Wiese remained optimistic about the company’s plans.

“The Group demonstrated strong operational discipline and strategic agility, delivering solid performance and sustained progress across key markets,” he said.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/business/830380/billionaire-christo-wieses-firm-finding-its-fortunes-outside-south-africa/