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# Mustek Navigates Chip-Supply Crisis with Strategic Profit Surge

**[Collections](https://daily.dev/sources/collections)** · 2 min read · 0 upvotes · 0 comments

## Summary

South African tech distributor Mustek reported a 256% surge in headline earnings per share to 83.54 cents for the six months ending December 2025, despite a 2.4% revenue decline to R3.5 billion. The profit jump was largely driven by a R63.8-million foreign currency turnaround, reduced operating expenses, and lower finance costs. Mustek warns that global memory and storage shortages—fueled by AI infrastructure expansion—will persist until 2027. The company also nearly doubled cybersecurity services revenue and acquired a 51% stake in Business AI to build a B2B marketplace for AI services.

## Content

South African technology distributor Mustek has issued a cautious outlook regarding the ongoing global shortages of memory and storage components, attributing this to the aggressive expansion of AI infrastructure worldwide. The company expects these shortages to persist until 2027. Despite this challenging environment, Mustek achieved a noteworthy 256% increase in headline earnings per share to 83.54 cents for the six-month period ending 31 December 2025, even as revenues dipped by 2.4% to R3.5 billion.

The surge in profits was primarily the result of a R63.8-million turnaround in the company's foreign currency position, transforming a previous R28.3-million loss into a R35.5-million gain. This financial resilience was further bolstered by a 4.1% decrease in operating expenses and a 42.4% reduction in net finance costs. Mustek's gross profit margins did decline from 13.9% to 12.6%, partially due to a ~R62-million inventory provision. However, the company remains optimistic about expanding margins in the memory and storage sector, driven by its strategic hedging strategies amid global supply constraints linked to heightened data center demand.

In addition to navigating through these supply challenges, Mustek has almost doubled its revenue from cybersecurity services and addressed the AI talent shortage within the market. The company acquired a 51% stake in Business AI, aligning with their vision to establish a B2B marketplace for AI services. CEO Hein Engelbrecht has expressed confidence in maintaining the momentum of profitability through prudent cost-management disciplines and favorable currency outcomes.

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Tags: [#cyber](https://daily.dev/tags/cyber), [#supply-chain](https://daily.dev/tags/supply-chain), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure)

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