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Johannesburg - Agricultural group Senwes on Tuesday reported
a 34.4% rise in headline earnings per share to 66.9 cents in the six months to
October 2011 from previous comparable period.
Turnover increased to R7.3bn from R4.1bn a year earlier,
while profit after tax was up R113m from R90m. The group declared an interim
dividend of 20c per share.
Despite the 46% increase in commodity prices and resultant
increase in operating capital, cash of R33m was generated.
In terms of Senwes Credit division, the group said grain
producers achieved a good crop yield together with a higher grain price, their
crops realised earlier than normal and they paid off their debt at a faster
pace.
Regarding Senwes Village, which comprised mechanisation and
retail networks, the company said the business unit reflected an 81%
improvement in its operating results before tax compared to the previous year.
The 2011 summer crop was characterised by a late and long
crop season which, together with the 13.5% downscaling of hectares planted,
resulted in a 17% lower crop intake, thus affecting Senwes Grainlink.
Looking ahead, managing director Francois Strydom said the
faster outloading rate would most probably impact negatively on grain stock
levels and as a result silo storage income would most probably be under
pressure, particularly during the second six months.
"The lower grain stock levels will also impact negatively on the business base of the grain trading division," he said.
