DURBAN, SOUTH AFRICA, 26 August 2022 – Grindrod Limited announced its interim results for the six months ended 30 June 2022.
The Group’s core operations comprising Port and Terminals, Logistics and Bank, delivered a trading profit of R1.1 billion, up 37% on the prior period and revenue of R3.1 billion, up by 31% on the prior period. Headline earnings from core operations increased by 53% to R529.1 million and cash generated from operations increased by 120% to R740.5 million.
The commendable results are underpinned by solid mineral and agri commodity markets and continued good performance at Grindrod Bank on the back of good net interest margins.
Core operations
Port and TerminalsVolumes handled by our terminal operations increased by 52% on the prior period to 7.5 million tonnes, despite operational challenges beyond our control.
Maputo Port volumes grew by 30% to 12.3 million tonnes compared to the prior period. The port has spent a total of US$110.3 million to date on its chrome and ferro-chrome slab capacity expansion, rail offloading facility construction, port road infrastructure upgrade and berth rehabilitation, including berth pocket dredge.
LogisticsThe coastal shipping and container depot business recovered after the devastating floods in April 2022 reporting an earnings growth of 88%.
Delivering on customer needs, the 75 000m2 container park development in Denver, Johannesburg, is gaining momentum and is on track. This facility is central to the solution we provide to shipping line customers serving the hinterland.
Grindrod’s rail business showed an improvement in its locomotive deployment. 46% of the fleet has been deployed, a 31% increase from last year. We are progressing well with the overhaul of the locomotives currently in the workshop.
The Northern Mozambique graphite operations, project cargo management and the Clearing and Forwarding business delivered solid results.
“In line with our strategy of finding the most cost-effective and efficient route to market for our customer’s cargo, Grindrod delivered on successful projects.
We collaborated with South African miners, eSwatini Rail and CFM to facilitate the transportation of coal through eSwatini to our facilities in Maputo, alleviating the congestion at Komatipoort.
Shortage of containers and road bridge restrictions necessitated the team working with our graphite customer in Northern Mozambique to act swiftly and provide the complementary solution to export bagged graphite in bulk through Pemba.
These successful innovative initiatives are being led by our people who constantly strive for operational excellence,” said Xolani Mbambo, CEO of Grindrod Freight Services.
BankGrindrod Bank reported healthy growth of 63% in its earnings from the prior period, underpinned by the higher interest rate environment.
The process to execute on conditions precedent relating to the disposal of Grindrod Bank to African Bank for R1.5 billion is on track.
Conclusion
“We welcomed Cheryl Carolus as our new Chair in May this year and in July announced Xolani Mbambo as the incoming CEO, effective 1 January 2023. I will remain Chief Executive until 31 December 2022 to facilitate a smooth transition to Xolani. It has been an honour to lead this successful and dynamic company and its motivated, determined people, who are the cornerstones of the business,” Andrew Waller, CEO.
Grindrod delivers efficient and cost-effective solutions for its customers’ cargo flows, living its purpose to enable Africa’s trade with the world and touching the lives of the communities in which it operates. Grindrod Bank remains focused on its core strengths, expanding its SME offering and providing a compelling platform banking solution.