Article
Senwes announces financial results
Published: 02/08/2023
The Senwes Group recently announced its financial results for 2022/23. With a turnover of R13 632
million (growth of 25,3%), a profit after tax attributable to shareholders of
the company of R907 million (growth of 50,9%), and normalised headline earnings
of 558,1 cents per share (growth of 40,2%), all stakeholders should be smiling
despite the current challenges within the agricultural sector.
“It is important to note that the
figures we are presenting relate to the financial year from 1 May 2022 to 30
April 2023. These figures include the harvest delivered in 2022 and the input
costs incurred for the next harvest, which will only reflect in our 2023/24
figures,” said Francois Strydom, CEO of the Senwes Group. “When comparing the
latest results to the previous year’s, we are grateful for a second consecutive
good year.”
Strydom explained that the higher
profits can be attributed to several reasons. “The Senwes Group has expanded
significantly. Therefore, the higher figures don’t only come from the same
customer base, but from more customers and more businesses. Although this is
the second year that Suidwes’ figures have been included for a full year, the
actual impact of the operational benefits is now at a much higher level. Falcon
and KLK also delivered good results. Another important point is that the
figures include ten months of our new John Deere dealerships in Germany. It
remains crucial for us to allocate capital effectively.”
Strydom mentioned that maize that is
not graded as WM1 usually represents around 6% of the harvest but has increased
to approximately 35% in the past financial year. “This is due to the
exceptionally high rainfall in the previous season, resulting in waterlogged
fields. Despite the lower quality, producers were still able to deliver high
volumes, and a beneficial maize price worked in their favour. The significant
increase in input costs for all crops during the past financial year is also
notable. A good wheat harvest also contributed to these financial results.”
The Senwes Group announced a final dividend of 40 cents
per share and a special dividend of 56 cents per share. – Press release, Senwes