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Condensed Consolidated Financial Results For The Six Months Ended 31 March 2023
KAL GROUP LIMITED
(Previously Kaap Agri Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2011/113185/06)
Share code: KAL
ISIN: ZAE000244711
(“KAL” or “the Company” or “Group”)
CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 MARCH 2023
1. INTRODUCTION
The first six months of the 2023 financial year (“H1”) were dominated by poor economic
conditions and the ongoing and continuous high levels of loadshedding. The negative effects of
loadshedding, both in terms of direct costs as well as indirect costs (lost turnover) are being closely
monitored and action plans are in place to partially mitigate the financial impact. The long-term
wellbeing and sustainability of the KAL business and our stakeholders remains our number one
priority.
During H1, the Group, bolstered by the inclusion of the non-like-for-like contribution of PEG Retail
Holdings (Pty) Ltd (“PEG”), generated strong revenue growth across the fuel and convenience
channel whilst pressure remained on general retail and agricultural category growth. The addition
of the 41 PEG business units contributed to Group fuel volumes increasing by 102.8%, with further
market share gains in the original TFC business units as well as through Agrimark fuel channels.
The building material sector has shown a severe downturn but despite being down year-on-year,
our various building material categories have outperformed the sector. Whilst still high, fuel and
fertiliser inflation pulled back, however packaging material and a number of other key categories
experienced increased inflation. The growth in Group revenue was underpinned by a 183.6%
increase in the number of transactions (4.0% increase excluding PEG).
Below average rainfall towards the end of the 2022 wheat season resulted in a more normalized
wheat harvest compared to the prior year. Concerning trends in the agri environment including
high input costs, curtailed capacity expansion and infrastructure spend and ongoing port logistics
challenges, specifically export related, continued. The fruit and vegetable sectors have been
severely dampened by loadshedding costs, weather events and increased input costs due to
inflationary pressures. The retail sector has struggled off the back of higher interest rates reducing
disposable income and industry wide fuel volume pressure has intensified.
The ongoing impact of the Russia / Ukraine conflict, which has negatively impacted farming input
costs, specifically fertilizer and fuel, is expected to continue for the foreseeable future. Although
the the overall agriculture outlook in the areas in which we operate is stable, producer cashflow
pressure is expected to continue. Weather patterns are being closely monitored as the likelihood
of El Nino seems to be increasing.
Moderate growth and margin pressure in general retail is expected, with fuel prices and other
inflationary pressures dampening this sector. The building material sector is expected to continue
to struggle. It is expected that pressure will remain on fuel volume sales partly offset by constantly
improving convenience and quick-service-restaurant spend. Manufacturing performance is
expected to be subdued as a result of a slowdown in infrastructural expansions.
In line with previous years, the first six months’ earnings are expected to contribute more to full
year earnings than the second six months. Whilst there are many challenges, KAL has proven to
be resilient throughout and continues to push hard to achieve its stated medium-term growth
objectives. Management are cautiously optimistic regarding the performance of the business
during the coming six-month period given the current economic and power supply challenges.
2. SALIENT FEATURES
Revenue increased by 68.4% to R12.09 billion, from R7.18 billion in the prior corresponding
period.
EBITDA increased by 30.9% to R521.3 million, from R398.3 million in the prior corresponding
period.
Earnings per share increased by 4.3% to 382.29 cents per share, from 366.56 cents per share in
the prior corresponding period.
Headline earnings per share increased by 11.6% to 381.09 cents per share, from 341.61 cents per
share in the prior corresponding period.
Recurring headline earnings per share increased by 8.7% to 381.64 cents per share, from 351.11
cents per share in the prior corresponding period.
An interim dividend of 50.00 cents per share has been declared for the six months ended
31 March 2023 (2022: 46.00 cents per share), resulting in an increase of 8.7% from the prior
corresponding period.
3. DIVIDEND DECLARATION
A gross interim dividend of 50.00 cents per share (2022: 46.00 cents per share) has been approved
and declared by the board of directors of the Group from income reserves for the six months
ended 31 March 2023. The interim dividend amount, net of South African dividends tax of 20% is
40.00 cents per share for those shareholders not exempt from dividend tax or who are not entitled
to a reduced rate in terms of the applicable double tax agreement.
The salient dates for this dividend distribution are:
Declaration date Thursday, 4 May 2023
Last day to trade cum dividend Tuesday, 6 June 2023
Trading ex-dividend commences Wednesday, 7 June 2023
Record date to qualify for dividend Friday, 9 June 2023
Date of payment Monday, 12 June 2023
The number of ordinary shares in issue at declaration date is 74 319 837 and the income tax
number of KAL is 9312717177.
Share certificates may not be dematerialised or rematerialised between Wednesday, 7 June 2023
and Friday, 9 June 2023, both days inclusive.
4. SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the information in the full announcement (“Full Announcement”) and does
not contain full or complete details. The Full Announcement can be found at:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/KALE/KALMar23.pdf
A copy of the Full Announcement is also available for viewing on the Company’s website at
https://www.kalgroup.co.za/s3/attachments/interim-results-31-march-2023.pdf
or may be requested in person, at the Company’s registered office or the office of the sponsor, at
no charge, during office hours.
Any investment decisions by investors and/or shareholders should be based on consideration of
the Full Announcement, as a whole.
The condensed consolidated interim financial results have not been audited or reviewed by the
Company’s auditors.
Paarl
4 May 2023
Sponsor
PSG Capital
Date: 04-05-2023 08:00:00
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