Senwes prospers in challenging macro-economic conditions

“This exceptional performance was achieved in a most challenging year with significantly lower summer grain plantings due to the late rain. Late plantings placed limitations on the quality of maize, which resulted in pressure on the market access pillar,” said Francois Strydom, Senwes Group Chief Executive Officer. Strydom added that the lower grain volumes had a negative impact on all parties throughout the grain value chain and cash flow pressure and limited capital expenditure ability were clearly visible. Consequently cash generated from operating activities decreased by 5% to R545m, compared to R575m the previous year.

Other financial highlights are a 78,7% increase in turnover to R4,8bn and a final dividend declaration of 30 cents per share. The net asset value of the group increased by 7,2% and the total shareholder return (share price growth and dividends) for the financial year ended 30 April 2020, amounts to 5,5%.

The Senwes Group managed to acquire a 57,7% share in KLK Landbou Limited during the year and to decrease its risks in respect of its agricultural equipment portfolio by the addition of Falcon Agricultural Equipment in order to expand the Senwes Equipment footprint. Senwes also acquired the remaining 50% share in Grainovation during the year in order to fully integrate its service delivery with its silo operations and grain marketing.

Senwes believes that a clear strategy, the ability to execute the strategy and to manage balance sheet capacity, will be the distinguishing factors between role-players. “We believe that our sector finds itself at an important point in time in respect of change", according to Strydom.