Report
Senwes Ltd
1 Charel De Klerk Street,
PO Box 31
Phone: +27 184647800p:+27 184647800 KLERKSDORP, 2570  South Africa Ticker: ZXSWSZXSWS


Strong results for Senwes despite tough conditions


Click Here for Print Magazine Display:

- Susan Marais

The Senwes Group reported a profit of R526 million for the 2020/2021 financial year, a 73,6% increase on the R303 million reported for the corresponding period of the previous year. The results showed a 57,7% increase in turnover, amounting to R7,6 billion (2020: R4,8 billion), while earnings before interest, depreciation and amortisation increased 61,1% from R600 million to R1 billion.

Senwes CEO Francois Strydom said the business had been able to deliver these results due to a combination of positive conditions.

“We need to remember that this was an exceptional year for agriculture. The fact that food and fibre were classified as essential services helped us immensely. Furthermore, both the winter and summer rainfall areas had great rainfall and a wonderful climate for production. This helped with increased production.

“Lastly, we benefitted from a boom in soft and hard commodities. This was largely due to China and the rest of the world recovering from the COVID-19 pandemic’s financial impact.”

The agribusiness declared a final dividend of 32c/ share (2020: 30c/share), with a special dividend of 26c/share (2020: no dividend). The net asset value of the group increased to R17,60/ share (2020: R15,10/ share). Earnings per share of 307,2c were delivered, which is 72,3% higher than the 178,3c/ share for the corresponding period of the previous year. Cash generated from operating activities increased 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 12,9% year-on-year, with a profit of R210 million recorded.

With maize farmers currently harvesting, Strydom said it seemed as if it might be another high-volume year. However, due to rising input costs and weak consumer spending, he did not think these strong returns would endure.

“Although commodity prices remain high, freight costs have literally doubled in a year. The crude oil price dropped to US$20 [about R287] a barrel last year, but it has already increased to US$80 [R1 149] per barrel this year. Despite the fact that farmers’ lands still look great and commodity prices remain high, the price increases of diesel, chemicals and fertilisers will have a negative impact on profits.”

He said the fact that basic services such as roads, railway lines and water resources were in disarray would also hamper profitability in future.


Related Businesses
- - Customer

Copyright © 2021 by CreditRiskMonitor.com (Ticker: CRMZ®). All rights reserved.  You are not permitted to use this report or the information contained herein for any purpose not expressly permitted by CreditRiskMonitor.com, Inc. Except as expressly permitted by CreditRiskMonitor.com, Inc., you are not permitted, in whole or in part, to copy, alter, correct, adapt, translate, enhance, lease, sell, sublicense, assign, distribute, publish, otherwise make available to any third party, or prepare derivative works or improvements of this report or any of the information contained therein. You are not permitted to reverse engineer, disassemble, decompile, decode, or adapt the software, algorithms or other processes used to prepare this report, or otherwise attempt to derive or gain access to the source code of same. You agree not to remove, alter, obscure, combine or otherwise change any disclaimers, trademarks, copyrights, other intellectual property rights, proprietary rights, or other symbols, notices, marks, or serial numbers on or relating to any copy of the report or on marketing or other materials that CreditRiskMonitor.com, Inc. may provide to you. You will not use this report in any manner or for any purpose that infringes, misappropriates, or otherwise violates any right of any party, or that violates any applicable law.  
The FRISK® scores, agency ratings, credit limit recommendations and other scores, analysis and commentary are opinions of CreditRiskMonitor.com, Inc. and/or its suppliers, not statements of fact, and should be one of several factors in making credit decisions.  Any reliance you place on the information in this report is strictly at your own risk. Except as expressly provided by CreditRiskMonitor.com, Inc., no warranties or representations of any type, including without limitation of results to be obtained, merchantability or fitness for a particular purpose, are made concerning any part of CreditRiskMonitor.com, Inc.’s service, including without limitation the FRISK® scores.  The information published above has been obtained from sources CreditRiskMonitor considers to be reliable.  CreditRiskMonitor.com, Inc. and its third-party suppliers do not guarantee or validate the accuracy and completeness of the information provided in this report, the underlying information input to create the FRISK® scores, and specifically do not assume responsibility for not reporting any information omitted or withheld.  By using this website, you accept the Terms of Use Agreement
Contact Us: 845.230.3000
Fundamental financial data concerning public companies may be provided by Refinitiv (click for restrictions)
Saturday, July 31, 2021