Agriculture-focused Kaap Agri’s shares jumped on Tuesday after it said it expects a bump in profit for the interim period to end-March.
The company’s share price gained the most in two weeks on the JSE on Tuesday, up 4.14% to R45.05. This leaves it down about 7% so far this year.
The company said in a trading update it expects its headline earnings per share (Heps) to increase by between 13.3% and 14.3% to between 340c and 343c. It didn’t, however, go into any detail on the reasons for the increase.
Earnings per share are expected to rise by about a fifth from 300.39c to between 365c and 368c.
Kaap Agri, whose interests span retail, fuel, farming and manufacturing, reached a deal to buy independent fuel retailer PEG for R1.1bn in January 2022 to double its fuel station network and boost its empowerment credentials.
The group, valued at R3.4bn on the JSE, is looking to pick up assets, with a part of its plans being to more than double pre-tax profit to R1bn over the next three years.
Kaap Agri runs various brands, offering everything from farming equipment to dog food and building materials, as well as financial, grain handling, and agency services.
The company has not announced when it expects to deliver its final results for the reporting period.
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