Senwes announces positive interim results

The company delivered a profit after tax of R91 million compared to the profit after tax of R103 million for the corresponding period of the previous year.

Senwes announces positive interim results
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The Senwes board of directors decided to postpone the consideration of an interim dividend to March 2017, when there will be more certainty about the potential of the current season.

The normalised headline earnings per share were 53,9c compared to 57,4c last year.  An increase in net value of 46c per share was achieved with a return on opening equity of 4,8%. Earnings before interest, taxes, depreciation and amortization increased by about 9, 6% to R262 million.

According to Senwes CEO Francois Strydom, a good 2016/2017 grain production season was foreseen. The expected increase in production would nevertheless only have a positive impact on the 2018 financial year.

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“Expected increases in fuel prices, the effect of the stronger dollar after the US election, our own unstable political arena and the possible continued declining trend of commodity prices for the new season could place producers under further pressure,” said Strydom.

Digital editor for South Africa's oldest and most read farming magazine.