Data provided by McGregor BFA
All data is delayed
Loading...
See More

Afgri loses out as farmers plant less

Sep 07 2011 08:22 Reuters

Related Articles

Afgri to pay millions after grain deal

Agribusiness prospects looking up

Afgri confident on higher grain prices

Afgri trims offer for Rossgro Chickens

Afgri implements empowerment structure

Afgri plans to acquire Pride Milling

 

Johannesburg - Agri-business group Afgri [JSE:AFR] reported a 30% fall in full-year earnings on Wednesday as domestic farmers planted less maize than expected, but said high prices should prompt more acreage to be seeded in the coming season, boosting demand for its products and services.

The results were in line with expectations as the group had flagged to the market in late July that it expected a headline earnings drop of between 30% and 40%.

The agricultural services group said headline earnings per share for the year to end-June totalled 54.7 cents, compared with 78.6c a year earlier.

The company said earnings were knocked as farmers in South Africa planted less maize than anticipated, which decreased demand for some of its products, including inputs such as seed and fertiliser but also storage and silo services.

"South Africa produced a large maize crop for the fourth year in a row. However, the crop was smaller than originally anticipated and in certain areas, in particular Mpumalanga and Gauteng, a mid-season drought followed by an above-average late rainy season negatively influenced both yield and quality," it said.

"In addition to this, farmers reduced spending on capital equipment and other expenses. International commodity prices, including the prices of grains and food in general, only began to increase in early 2011. The combined result of these factors was that the group's overall performance was lower than (the) prior year," it said.

South African maize prices are currently trading near 3-year highs and the planting season starts in a matter of weeks.

The company declared a final dividend of 3.2c.

Afgri shares have fallen around 12% so far this year, compared with a 7.5% fall on the JSE All-share [JSE:J203] index. 

afgri  |  farming  |  agriculture
NEXT ON FIN24X

Time to say cheese again

2014-04-16 12:07

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

An uncomfortable election

The latter few weeks of election 2014, have seen South Africans reeling from an assault on their comfort zone when it comes to voting, writes Daniel Silke

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...