Senwes announce interim financial results

  • 06 December 2017
  • 7278
  •  Senwes
  •  press-release

The Group delivered a profit after tax of R144,9 million, which was 60,7% higher than the previous year. Normalised headline earnings increased to 97,8 cents per share, 81,5% higher than the comparative period's 53,9 cents per share.
The first six months of the 2018 financial year were characterised by an all-time high crop intake. Maize prices responded to the increased volumes and traded down towards export parity. Turnover decreased by 15,4% due to lower commodity prices.
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Other key financial indicators:
  • Gross profit increased by 26,6%, from R532 million to R669 million
  • Earnings before interest and taxation (EBIT) increased by 27,9%, from R240 million to R307 million
  • Total shareholders’ return on opening market price increased from 1,9% to 20,7%
  • Own equity ratio decreased from 39% to 36%
  • Interest cover increased from 2,5 times to 3,0 times
  • Cash generated from operating activities increased from R56 million to R303 million
The profit before tax of the different segments is as follows:
  • Market access increased by 166,7%, from R57 million to R152 million
  • Input supply decreased by 45,1%, from R31 million to R17 million
  • Financial services decreased by 2,9%, from R69 million to R67 million
The second semester is usually characterised by a strong decrease in grain stock levels as the off-takers of grain and oilseeds withdraw their products. The market will most probably have abnormally high soft commodity levels by April 2018, should the current low consumer trends continue. A normal new season will bring with it numerous challenges with regards to storage capacity.
A difficult second semester is predicted for agri-equipment sales. Management will be prudent in managing agri-equipment stock levels.
Dividend declaration
An interim dividend of 27 cents per share (2016: 20 cents) has been declared. The last day to trade shall be 15 December 2017. All shareholders registered as such in the shareholders’ register on 15 December 2017 will receive a dividend. Dividends will be paid on 18 December 2017, net of dividend withholding tax of 20%, where applicable.
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