AECI aims to generate revenue of about R4bn from its plant and animal health businesses by 2020, CEO Mark Dytor says.
Speaking after a presentation to analysts on Tuesday, Dytor said the group was strategically pushing into the rest of Africa with new intellectual property and products. It was also looking at overseas markets.
The plant and animal health arm generates about R3bn.
"We are aiming to get it up to 10% of trading profit in the next two years," said Dytor.
AECI may invest in start-up agrichemicals businesses with good intellectual property portfolios, and there were many more efficiencies to be derived in terms of crop yields, he said. Meanwhile, much of Africa was water stressed.
"New technology will help reduce water consumption in growing food," Dytor said.
Commenting on the presentation — which focused on AECI’s agribusiness, Nulandis — Mish-al Emeran, equity analyst at Electus Fund Managers, said AECI would be reporting its business segments in five strategic pillars during its next reporting period: mining solutions; water and process; plant and animal health; food and beverage; and chemicals.
"Mining solutions and chemicals are the bigger segments, but it sees a growth opportunity in water and process and plant and animal health," he said. In agrichemicals, Nulandis’s NuWay philosophy recognises a more eco-friendly approach to the application of products for soil and plant health.
AECI delivered "a resilient" overall performance in difficult trading conditions, especially in SA, in the six months to June. Profit from operations soared 19% year on year, while headline earnings per share jumped 32%.
"We’re not shooting the lights out, but it’s a really credible performance in terms of the environment," Dytor had said in presenting the first-half results.
The group said more normal rainfall patterns in Southern Africa had allowed the agricultural products segment to recover, except in the Western Cape, where drought remained a "grave concern".
Despite commodity price increases stimulating higher mining output, group revenue fell 7% to R8.5bn in the period.
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