Cash flow generated from operating activities amounts to R440m - 29,8% higher than the R339m generated during the same period of the previous year.
A profit attributable to normal equity holders of R281m was delivered for the six months ending on 31 October 2020 - a 67,3% increase from the R168m of the corresponding period of the previous year.
“The first six months of 2020 will always be remembered for the Covid-19 pandemic, but at Senwes Group level for the low carry-over stock levels, late plantings, excessive rain in April 2020 and the poor quality of grain as the season progressed. Despite this, the Senwes Group performed better than initially expected. The performance of the agricultural equipment business unit has improved since the previous year, with an increase in total turnover of 74% for the year to date. The larger crop, together with the significantly higher commodity prices, lower interest rates and good prospects for the coming season, had a positive impact on this market,“ said Francois Strydom, Senwes Group Chief Executive Officer.
Other financial highlights are an interim dividend declaration of 32 cents per share (2019: 30c/share) while the net asset value of the group increased by 12,4% to R16,3 per share. Headline earnings per share of 164,1 cents were delivered in the first six months, which is 65% higher than the 99,7 cents/share for the corresponding period of the previous year.
Prospects
“Due to the unbundling of the retail business in partnership with Afgri, Hinterland, the consolidation with Suidwes, which should be finalised by January 2021 at the latest, as well as the faster than expected recovery of businesses in the portfolio after the relaxation of the Covid-19 measures, the momentum should continue for the next six months,” according to Strydom.
“Add to this a normal to above normal agricultural cycle for the summer grain areas, and the Senwes Group should deliver good results by 30 April 2021. However, it is foreseen that upward pressure on commodity prices and the availability of quality white maize products will increase during the last quarter of the financial year,” said Corné Kruger, Senwes Group Chief Financial Officer.
END
Enquiries: Francois Strydom
Group Chief Executive Officer
Tel: +27 18 464 7115
francois.strydom@senwes.co.za
www.senwes.co.za