Resilience the key to Senwes’ record financial results

  • 02 July 2021
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  • nuus



A profit attributable to normal equity holders of R526 million was delivered, representing an increase of 73,6% from the R303 million of the corresponding period of the previous year. 

“Globally, the year 2020/21 will be remembered not only for the devastating effects of the Covid-19 pandemic, but also as a time of great instability, digital transformation and the rapid transition to a new norm. On home soil the agricultural sector had to further contend with a season of extremes, ranging from wildfires, floods, crop pests and animal diseases to a record maize crop and continued favourable market prospects,” said Francois Strydom, Group Chief Executive Officer. 

He adds that the Group’s stable financial performance is dependent on Senwes’ agility and its ability to reinvent in order the meet the future needs of its diverse client base. “By reimagining our future as an agri-business we not only reaffirmed our commitment to relevance, innovation and value creation, but also enabled our stakeholders to re-envision and ultimately re-engineer their own business potential”.

Other financial highlights are a final dividend declaration of 32 cents per share (2020: 30 cents) with a special dividend of 26 cents per share (2020: 0 cents), while the net asset value of the group increased to R17,6 per share (2020: R15,1 p/share). Earnings per share of 307,2 cents were delivered, which is 72,3% higher than the 178,3 cents/share for the corresponding period of the previous year. 

Cash generated from operating activities increased by 67% from R545 million in 2020 to R910 million and the group's input service channel showed a profit of R584 million - a 294,6% improvement on the previous year's performance. The market access channel grew by 12,9% and a profit of R210 million was recorded.

Prospects

“The expectations for the 2021 harvest, as reported by the Crop Estimate Committee, are a national maize harvest of more than 16 million tonnes, while international commodity prices were at good levels over the past year. The lower interest rates brought about huge savings for all businesses and expectations are therefore positive from both a cash flow and a profitability point of view. It will certainly indicate higher planting intentions for the 2021/22 season, provided that rainfall patterns support this”, said Strydom.

“Add to this the good turnover generated from the 2020/21 harvest and higher business confidence levels and all indications are that producers will be spending more on next season’s inputs and capital goods. The uptake of credit should slow down because of the surplus cash available in the market”, said Senwes Group Chief Financial Officer, Corné Kruger.

END
Enquiries: Francois Strydom
Group Chief Executive Officer
Tel: +27 18 464 7115
francois.strydom@senwes.co.za
www.senwes.co.za