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Condensed Consolidated Financial Statements for the Year Ended 30 September 2019 and Dividend Declaration
KAAP AGRI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2011/113185/06)
Share code: KAL
ISIN: ZAE000244711
(“Kaap Agri” or “the Company”)
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 SEPTEMBER 2019 AND DIVIDEND DECLARATION
1. INTRODUCTION
Despite the slower than anticipated recovery from the drought and the severely stressed
consumer environment we have traded in over the past year, Kaap Agri increased
revenue by 29.1% to R8.5 billion, up from R6.5 billion in the previous financial year with
like-for-like comparable growth of 7.6%. This growth in revenue was driven by a 10.6%
increase in the number of transactions. Product inflation, excluding the impact of fuel
inflation, is estimated at 0.2% with fuel inflation being 6.1%. Gross profit has not grown
in relation to revenue growth due to the changing impact of sales mix, business
environment and fuel price fluctuations whilst also experiencing margin pressure.
The trading results have been hampered by a prolonged impact of drought conditions in
certain areas of the Western and Northern Cape, specifically in the Agri-Retail and
Manufacturing divisions. The subdued retail sector had the largest influence on the Urban
Region Agrimarks. Notwithstanding a below average Q3, we experienced an
encouraging uplift in Q4 to end the year strongly from both an Agri and a Retail
perspective. The Wesgraan recovery, off the back of a good 2018 wheat harvest, realised
the anticipated performance improvement. Mechanisation experienced a favourable
uptick in the period under review.
Excluding the impact of KwaZulu-Natal based Partridge Building Supplies (Pty) Ltd
(“Forge”) acquired on 1 October 2018, non-agri retail sales have performed well, growing
at 8.6% on the previous comparable period. With the exception of water storage
categories coming off a high base last year as well as constrained cement sales, non-agri
retail sales delivered growth of 15.4%.
Retail fuel expansion continued through selective acquisitions. The Fuel Company grew
annual fuel volumes, inclusive of managed sites awaiting regulatory approval, by 10.4%,
with a strong pipeline of site acquisitions at various stages of conclusion.
Kaap Agri continues to explore Agri, Retail and Fuel expansion opportunities.
The Company’s diversification, ongoing investment and resilience continue to generate
strong earnings growth under the circumstances, with EBITDA increasing by 15,1%.
The past two years have been challenging for the Company. However, we believe our
growth strategies and resilience have delivered respectable results given the conditions
under which we have traded. We have continued and accelerated our focus on selective
strategic revenue generating expansion and acquisition opportunities and we remain
committed to improving the customer experience and simplifying our business processes.
We believe the business is suitably positioned to take advantage of an improvement in
trading conditions and to execute in terms of our strategic imperatives.
2. SALIENT FEATURES
Revenue increased by 29,1% to R8,5 billion, from R6,5 billion in the prior corresponding
period.
EBITDA increased by 15,1% to R550,0 million.
Earnings per share increased by 12.9% to 394,98 cents per share, from 349,80 cents per
share in the prior corresponding period.
Headline earnings per share increased by 14,0% to 397,85 cents per share, from 348,98
cents per share in the prior corresponding period.
Recurring headline earnings per share increased by 6,0% to 375,19 cents per share, from
354,10 cents per share in the prior corresponding period.
Total gross dividends per share increased by 5,8% to 123,50 cents per share, from 116,70
cents per share in the prior corresponding period.
3. DIVIDEND DECLARATION
The directors resolved to declare a final gross dividend of 90,00 cents (2018: 84,70 cents)
per share from income reserves in respect of the year ended 30 September 2019. The
final dividend amount, net of South African dividend tax of 20%, is 72,00 cents
(2018: 67,76 cents) per share for those shareholders who are not exempt from dividend
tax. The number of ordinary shares in issue at the declaration date is 74 170 277 and the
income tax number of the Company is 9312717177.
The salient dates of the dividend declaration are:
Declaration date Thursday, 28 November 2019
Last day to trade cum dividend Tuesday, 11 February 2020
Trading ex-dividend commences Wednesday, 12 February 2020
Record date to qualify for dividend Friday, 14 February 2020
Date of payment Monday, 17 February 2020
Share certificates may not be dematerialised or rematerialised between Wednesday,
12 February 2020 and Friday, 14 February 2020, 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/2019/JSE/ISSE/KALE/KALSept19.pdf
Copies of the Full Announcement is also available for viewing on the Company’s website
at https://www.kaapagri.co.za/wp-content/uploads/2019/11/2019-Condensed-Financial-
Statements.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.
28 November 2019
Sponsor
PSG Capital
Date: 28-11-2019 09:00:00
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