“The drought meant that our customers did not have profits to reinvest back into their businesses in 2017,” says Sean Walsh, CEO of JSE-listed Kaap Agri.
While farmers have been slow to pick up their spending, there are definitely green shoots about – the deciduous fruit harvest was good and the wheat harvest is looking promising.” Kaap Agri November 28, 2018 at 2:00:00 PM PST In fact, for Kaap Agri, the impact of the drought far outweighed the impact of the land expropriation discussion, he says.
Many farmers are exporters and they cannot afford to fall behind in their investment cycle.
The company’s retail fuel operations are grouped within The Fuel Company (TFC), which also operates the forecourt convenience brand Expressmark.
During the year, revenue increased by 2.1% to about R6.55 billion, up from R6.42 billion in the previous financial year.
Recurring headline earnings grew by 1.7%, while recurring headline earnings per share increased by 0.7% to 354.10 cents, resulting in a five-year compound annual growth rate of 14.1% to September 30, 2018.
Regulatory delays “We estimate the drought impact on Wesgraan and agri retail to be 11.3% of the targeted 15% growth with a further 6.5% impact due to regulatory delays in the retail fuel environment.
The acquisition provides Kaap Agri with an entry point into a new geographical region, KZN, as well as an additional business stream in the pasture-based dairy sector.
The company will pay a final dividend of 84.7 cents per share, a 2.5% increase on the previous year.
It has grown at a compound annual growth rate of 18.5% over the past five years.