CHEMICAL group Rolfes is expanding into three countries in Africa and Brazil as it looks to diversify its revenue streams.

The group manufactures and distributes chemical products for the water, food, agriculture and industrial sectors.

The company will start distributing its products in Egypt, Ethiopia, Tunisia and Brazil during the 2017 financial year.

CEO Lizette Lynch said all the countries provided growth opportunities and further geographic diversification.

In Egypt and Tunisia, Rolfes will target the agricultural market while in Brazil and Ethiopia it is aiming at the industrial and water sectors.

"We see more growth coming from exports," said Lynch.

Group revenue increased by 20% to R1.3bn during the year to June. The group derives 10% of its revenues from outside SA.

Operating profit increased to R137m from R80m the previous period. Normalised headline earnings per share increased 46% to 55.9c.

The improved performance was attributed to, among other things, the inclusion of Bragan, which was acquired in 2015, the restructuring of the pigments business and the closure of the lead chrome manufacturing plant, which improved working capital management.

After almost doubling headline earnings and reducing the company’s gearing, Rolfes would be paying an annual dividend to shareholders, said Lynch.

Vunani Securities small and medium cap analyst Anthony Clark said that Rolfes had "transformed itself from past difficulties into a niche, tighter business via restructuring, cost rationalisation and latterly strategic acquisitions into higher margin products, latterly food chemicals".

Clark said: "The inclusion of the Bragan food chemicals business was the main kicker to the results."

Bragan contributed R468m to revenue and R56m to operating profit, said Clarke.

Rolfes said although the demand for industrial and other chemical products remained low it expected further earnings growth for the year.