Agribusiness-focused investment holding company Zeder Investments has reported a 28.6% decline in its full-year net asset value per share to R1.77.
The decline was mainly due to the special dividends of 61c per share paid and the downward adjustments in the valuation of Zaad, it said in a statement on Thursday.
Zaad’s valuation was adjusted following the lower valuations of its associate investment in Turkey and its African operations.
This was countered by an improvement in the valuation of most SA seed and chemical operations.
Zeder reported a headline loss for the year ended February of 10c per share after a profit of 0.8c in the previous year. Loss before tax from continued operations widened to R159m from R21m a year ago, mainly due to downward adjustment in the valuation of the group’s unlisted investments.
Zaad said the macro environment in which it operated remained relatively constrained during the year, mainly due to volatile weather patterns, risks associated with global market dynamics and the continued conflicts in the Middle East and Eastern Europe.
Given the uncertainty and volatility in the world markets, the board decided not to declare a dividend but would consider declaring further dividends when appropriate, Zeder said.
During November and December 2024, Zeder’s indirect subsidiary, Capespan Agri, disposed of the three primary farming production units and the Novo fruit packhouse operation to various third parties for a total of R713m, which equated to R621m for Zeder’s 87.1% interest.
As a result, the boards of Capespan Agri and Pome Investments declared and paid special dividends to its shareholders of which Zeder Financial Services received R484m during the financial year. Zeder, in turn, declared and paid special dividends in aggregate of R477m (31c per share) to shareholders in November and December 2024.
Zeder Financial Services received a further special dividend of R54m from Pome Investments subsequent to year-end on March 19.
Zeder announced on March 26 that through its subsidiaries and indirect subsidiaries of Zaad, it entered into separate sale of shares agreements with ETG Inputs to dispose of its operations in Zimbabwe, Mozambique and Zambia, including the intellectual property rights associated with these operations held by Bakker Brothers in the Netherlands, as one indivisible transaction, for R135m.
The disposal is subject to conditions precedent and the effective date is expected around the end of July.
Zeder anticipates a continuation of the uncertainty and volatility in the markets in which it operates in the short- to medium-term. Despite these challenges, it remains well positioned with a stable balance sheet and sufficient cash resources, it said.
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