“Although our earnings before interest, tax, depreciation and amortisation increased by 25,4% from R335m to R420m, our headline earnings per share decreased by 11,8% to 86,9c, compared to 98,5c the previous year” Francois Strydom, Senwes Group Chief Executive said. Strydom also added that the acquisition of KLK had been a huge equaliser for the late and poor grain harvest.
Senwes also announced that it obtained a 100% interest in the grain logistics company, Grainovation, after reporting date in order to fully integrate its service delivery with its silo operations and grain marketing.
In addition Senwes further expanded its John Deere agri-equipment offer with the acquisition of a 100% interest in Falcon Agricultural Equipment which, inter alia, distributes Amazone and Falcon products in Southern Africa.
The net asset value of the group increased by 5,8% for the six months and the total shareholder return (share price growth plus dividends) for the six months ended 31 October 2019, amounted to 17,4%.
Other announcements:
• An interim dividend of 30 cents per share was declared.
• The capitalisation of the loyalty scheme was successful and 72% of the debt to members of the scheme could be converted into equity.
Prospects:
Indications are that the group can expect a tougher second six months despite the fact that the market is holding out the prospect of an increase in hectares to be planted. The market access division is expecting lower inventory levels, while retailers are unlikely to be able to catch up on what they lost during the first six months to the same extent.
END
Enquiries: Francois Strydom
Group Chief Executive Officer