Photo: Annelie Coleman
The Senwes Group has increased its turnover by 47,8% to R5,2 billion, according to its interim results for the six months ended 31 October 2021.
During the corresponding period in 2020, the group achieved a turnover of R3,5 billion. Earnings before interest, depreciation and amortisation (EBITA) increased from R511 million to R533 million.
Independent agricultural economist, Dr Johan Willemse, ascribed the group’s positive results to exceptionally high grain yields in 2020/21, coupled with very good prices.
“The large 2020/21 grain harvests realised in South Africa benefitted agribusinesses such as Senwes with the increase in movement of grain through their network of silos.
“The low interest rate was another positive for the company during the past year. It significantly benefitted financing and the provision of funding,” Willemse said.
According to a Senwes statement, headline earnings surpassed its previous record of R224 million by 35,3% at R303 million. Cash flow generated from operating activities amounted to R548 million, 24,5% higher than the R440 million generated during the same period in the previous financial year.
Three-hundred-and-two million rand in profit attributable to the equity holders of the holding company was delivered for the period under review, which was a 7,5% increase from the R281 million in the corresponding period in 2020.
“An exceptional agricultural production and commodity price cycle, together with the unlocking of synergies from merger transactions and the reorganisation of the business model of the group, resulted in record results for the first six months of the financial year,” Francois Strydom, group CEO, said in the statement.
He added that good rainfall and carry-over soil moisture levels should result in a favourable 2021/22 production season.
Strydom said indications were that grain exports would increase in 2022, leaving the country with lower carry-over stock levels for the following season.
