Adaptability effects good results, despite volatile macro-agricultural environment

  • 28 June 2019
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  •  persverklaring

Group Chief Executive Officer, Francois Strydom, said: “Despite these aspects, the adaptability of the role players in our food value chain was once again very evident in the larger South African economy.”
The results reflect a decrease of 9% compared to the R311 million achieved in 2018. This decrease can mainly be attributed to decreased storage income as a result of a smaller crop (12,5 million tonnes in 2019 compared to 16,8 million tonnes in 2018), while the crop was also received six weeks late on average. 


A final dividend of 30 cents per share (2018: 27 cents per share) was declared, subject to the approval thereof at the annual general meeting to be held on 22 August 2019.

Other key financial ratios:

  • Operating profit before interest and tax decreased from R655m to R611m.
  • Cash flow generated from operating activities amounted to R139m (2018 – R286m), even after a R193m increase in operating capital invested.
  • Dividend yield on opening market price amounted to 5,5% (2018 – 5,2%).

What does the future hold?
The 2020-season is risk-laden and a difficult year is expected since producers planted late and fewer hectares were planted. The group will focus on cost saving, margin improvement and the discerning application of operating capital.
A conservative risk approach will be maintained, while the proposed capital programme will still enjoy preference. Diversification by means of differentiated commodities, as well as improved service delivery, should support the business through volatile business cycles. However, prospects for the future remain challenging in the macro-agricultural environment and a better commodity price cycle will relieve pressure on the customer and could stimulate spending within the sector.

Enquiries: Francois Strydom
Group Chief Executive Officer

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