Agribusiness-focused investment holding group Zeder crept back to the black in the year ended February, as headline earnings per share (HEPS) improved to 0.8c from a loss of 12.1c the prior year.
The company said this was mainly due to the prior year decrease in the listed KAL Group share price at the date of unbundling in April 2022, countered by the net increase in the valuation of Zeder’s unlisted investments during the year.
Profit for the year was R12m after a loss of R187m the previous year.
The company said the macro environment in which it operates remained relatively constrained during the year under review.
SA agribusinesses in general remains downbeat about the business environment and this is reflected in the agribusiness confidence index’s first-quarter reading of 40 points, well below the neutral 50-point mark, Zeder said in a statement on Wednesday.
“New challenges on the weather front include the ongoing El Niño weather pattern that has led to drought conditions which are devastating the summer grains and oilseed regions. In addition, persistent inefficiencies at the ports, poor rail and road infrastructure, worsening municipal service delivery and risks to energy availability are factors driving the sentiment,” the company said.
“We anticipate a continuation of the uncertainty and volatility in the markets that we operate in, in the short- to medium-term, especially ahead of the upcoming elections. Despite these challenges, Zeder remains well positioned with a stable balance sheet and cash resources,” it added.
At end-February, net asset value per share was R2.48, representing a decrease of 4.6% compared with the prior year. The decrease was mainly a result of the payment of special dividends, countered by the net adjustments in the valuation of its unlisted investments during the year, it said.
At the close of business on April 10, Zeder’s sum-of-the-parts value per share, calculated using the internal valuations for unlisted investments, decreased from R2.48 to R2.29, mainly because of the special dividend of 20c share paid subsequent to year end.
The company paid an aggregate of 15c per share in gross special dividends during the year. It declared no ordinary dividends during the current financial year.
Zeder’s dividend policy is to pay dividends conditional on it having sufficient funds for its operations and growth plans. Accordingly, the board declared a gross special dividend of 10c per share from income reserves subject to Reserve Bank approval.
The company said in March that it had received several approaches from third parties regarding its pome fruit division and Zaad Holdings. Pome is a general term for deciduous fruit such as apples and pears that have a core with seeds surrounded by an edible outer layer and skin.
The group is considering these approaches in a manner that is fair to the third parties and the respective management teams of the portfolio investments. It appointed PSG Capital and Coöperatieve Rabobank as co-advisers to consider any Zaad-specific approaches and potentially embark on formal processes if appropriate.
It said at the time that it expected the evaluation of those approaches to take several months.
In February, the group implemented the disposal by its unit Zeder Financial Services (ZFS) of its shareholding in Capespan Group, excluding its pome fruit primary production operations and the Novo fruit packhouse.
Zeder was listed on the JSE in 2006 as a vehicle to consolidate PSG’s various agribusiness industry holdings.
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