Grindrod has reported a fall in full-year headline earnings due to non-core business losses marked by border disruptions and severe weather events.
The company’s core operations, which include port and terminals, logistics and group activities, delivered a resilient performance, with core headline earnings reaching R1bn, Grindrod said on Thursday. However, the group’s overall headline earnings dropped to R311.9m from R1bn in the previous period.
Grindrod’s revenue from core operations for the year ended December decreased by 2% to R7.37bn, while earnings before interest, taxation, depreciation and amortisation (ebitda) fell by 20% to R2b.
Total group revenue was up 3% at R4.98bn and ebitda was down 68% at R295m. Total headline earnings per share (HEPS) were 69% lower at 46.7c.
An interim dividend of 17c per share was declared.
The company’s port volumes increased by 14% to 14.3-million tonnes, driven by record chrome exports through the Port of Maputo. However, drybulk terminal volumes decreased by 5% due to disruptions at the Lebombo/Ressano Garcia border — a border control point from Komatipoort in Mpumalanga going into Maputo Mozambique, and cyclonic flooding in early 2024.
Additionally, weak graphite demand from China and subdued container throughput weighed on the company's margins in the logistics segment.
The company said its focus on rail expansion is expected to drive future growth, with plans to acquire new and modern rolling stock.
“The return of 13 locomotives from Sierra Leone marked an achievement in our heavy-haul logistics operations,” the company said in a statement.
Additionally, the company is progressing with the second phase of its rail expansion in SA which includes plans to acquire modern rolling stock,” the company said in a statement.
Grindrod said the expansion aligned with ongoing logistics reform efforts in SA, where improving rail infrastructure is seen as critical to addressing inefficiencies in the transport sector.
Grindrod specialises in providing integrated logistics solutions, focusing on moving commodities from Africa to global markets. Its main business segments include ports and terminals, and logistics. The company’s operations span across key trade corridors in SA, Mozambique and Namibia, offering services such as port operations, terminal management, rail and intermodal solutions, road transportation, warehousing, and ships agency services.
The company plans to acquire the remaining stake in Terminal de Carvao da Matola in Maputo to strengthen its integrated logistics services along the Maputo corridor.
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