Wrap Text
Unaudited condensed consolidated interim results and cash dividend declaration for the six months ended 30 June 2023
GRINDROD LIMITED
Registration number: 1966/009846/06, Incorporated in the Republic of South Africa
Share code: GND and GNDP
ISIN: ZAE000072328 and ZAE000071106
("Grindrod", or "the Company" or "the Group")
Unaudited condensed consolidated interim results and cash dividend declaration for the six months ended 30 June 2023
Revenue*
UP 32%
R3 795 million
(2022 H1: R2 876 million)**
EBITDA*
UP 16%
R1 120 million
(2022 H1: R963 million)**
Headline earnings*
UP 26%
R563 million
(2022 H1: R446 million)**
Total ordinary dividends
UP 100%
34.4 cents per share
(2022 H1: 17.2 cents per share)
CORE BUSINESS
Grindrod achieved core headline earnings growth of 26% for the six months ended 30 June 2023 ("period"), supported by continued strong demand for Grindrod's
logistics solutions through its cargo terminals infrastructure footprint and complementary logistics service offerings.
Maputo port volumes increased by 30% compared to the prior period, resulting in record performance of 5.9 million tonnes exported during the period.
Grindrod's Mozambique drybulk terminals in Maputo and Matola handled 6.0 million tonnes, up 17% on the prior period. Grindrod is collaborating with Transnet
Freight Rail and Mozambique Port and Railways ("CFM") on the ongoing initiative to move cargo on trains running seamlessly between South Africa and
Mozambique which will improve train turnaround time and benefit export customers.
The eSwatini multimodal corridor operation which provides customers in the Mpumalanga area with an alternative route to Maputo and Matola export terminals
performed well, enabling export drybulk volume growth of 143% through this route. This success is attributable to the strong collaboration between eSwatini
Rail, CFM and Grindrod which has enabled seamless flow of trains between eSwatini and Mozambique for the benefit of export customers and all parties. The
northern Mozambique operations delivered solid results for the period with headline earnings up 15% on the prior period.
Grindrod's ships agency and clearing and forwarding headline earnings were strong, up 149% on the prior period, due to new customer contracts and growing
port calls. Integration of Grindrod's and Maersk's South African container handling businesses, following the merger transaction implemented at the start of
the year, is progressing well.
Grindrod's rail leasing business in Sierra Leone continues to deliver, having exceeded the 10 million tonne-mark since its inception in February 2021.
Grindrod made significant strides in re-establishing its rail activities in Zambia through its strategic co-operation with Zambia Railways.
Unaudited Unaudited
30 June 2023 30 June 2022**
Core operations inclusive of joint ventures* Rm Rm Change %
Revenue 3 795 2 876 32
Earnings before interest, taxation, depreciation and amortisation (EBITDA) 1 120 963 16
Profit attributable to ordinary shareholders 520 426 22
Headline earnings 563 446 26
* Core operations includes Port and Terminals, Logistics and Group.
** Prior year figures have been re-presented to exclude the Bank segment from core operations as it is a discontinued operation in terms of IFRS 5: Non-
current assets held for sale and discontinued operations.
NON-CORE BUSINESS
The period's results include net impairment and fair value losses of R78.7 million relating to the KwaZulu-Natal north coast property loans and the private
equity investment portfolio.
GROUP RESULTS
Headline earnings increased by 21% to R487.3 million compared to R404.4 million in the prior period. The results presented below include continuing and
discontinued operations.
Unaudited Unaudited
30 June 2023 30 June 2022
Total Group on a legal basis Rm Rm Change %
Revenue 2 470 2 479 -
EBITDA 487 615 (21)
Headline earnings 487 404 21
Basic earnings per share (cents) 66.6 57.8 15
Headline earnings per share (cents) 73.0 60.6 20
DECLARATION OF DIVIDEND
Ordinary dividend
Notice is hereby given that a gross interim dividend of 34.40 cents per share has been declared out of income reserves for the six months ended 30 June 2023
(2022 H1: 17.20 cents per share). The interim net dividend is 27.52 cents per share for ordinary shareholders who are not exempt from dividends tax.
At the date of this announcement, there were 698 031 586 issued ordinary shares.
Preference dividend
Notice is hereby given that a gross interim preference dividend of 483.0 cents (2022 H1: 337.0 cents) per cumulative, non-redeemable, non-participating and
non-convertible preference share has been declared out of income reserves for the six months ended 30 June 2023. The interim net preference dividend is
386.4 cents per share for preference shareholders who are not exempt from dividends tax.
At the date of this announcement, there were 7 400 000 preference shares in issue.
Salient dates
The salient dates for the ordinary dividend and preference dividend are as follows:
Dividend declaration date Friday, 25 August 2023
Last date to trade cum-dividend Tuesday, 19 September 2023
Securities start trading ex-dividend Wednesday, 20 September 2023
Record date Friday, 22 September 2023
Payment date Tuesday, 26 September 2023
No dematerialisation or rematerialisation of ordinary shares and preference shares will be allowed during the period Wednesday, 20 September 2023 to Friday,
22 September 2023, both days inclusive.
The local dividend tax rate is 20% and Grindrod's tax reference number is 9435/490/71/0. Both the ordinary dividend and preference dividend are declared in
the currency of the Republic of South Africa.
Directors' statement
This short-form announcement is the responsibility of the directors and is only a summary of the information of the unaudited condensed consolidated interim
results for the six months ended 30 June 2023 and does not contain full or complete details. The full announcement is available on the Company's website at
www.grindrod.com and the JSE's website on 25 August 2023 at https://senspdf.jse.co.za/documents/2023/jse/isse/GNDE/ie2023.pdf.
Shareholders are further advised that details in relation to the interim results presentation to be hosted by Grindrod at 9am on 25 August 2023 are
available on the Company's website.
Copies of the full announcement may also be requested by email at investorrelations@grindrod.com or telephonically from the Company's registered office and
the office of the sponsor. Any investment decision by investors and / or shareholders should be made having considered the full announcement as a whole.
By order of the Board
VB Commaille
Group Company Secretary
25 August 2023
Registered office and business address
Grindrod Mews, 106 Margaret Mncadi Avenue, Durban, 4001
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 25-08-2023 08:00:00
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