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