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KAL
CANCELLATION OF S423863 Condensed Consolidated Financial Statements for the Year Ended 30 September 2019 and Dividend Declaration

KAAP AGRI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2011/113185/06)
Share code: KAL
ISIN: ZAE000244711
(Kaap Agri or the Company)



CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 SEPTEMBER 2019 AND DIVIDEND DECLARATION



1.   INTRODUCTION

     Despite the slower than anticipated recovery from the drought and the severely stressed
     consumer environment we have traded in over the past year, Kaap Agri increased
     revenue by 29.1% to R8.5 billion, up from R6.5 billion in the previous financial year with
     like-for-like comparable growth of 7.6%. This growth in revenue was driven by a 10.6%
     increase in the number of transactions. Product inflation, excluding the impact of fuel
     inflation, is estimated at 0.2% with fuel inflation being 6.1%. Gross profit has not grown
     in relation to revenue growth due to the changing impact of sales mix, business
     environment and fuel price fluctuations whilst also experiencing margin pressure.

     The trading results have been hampered by a prolonged impact of drought conditions in
     certain areas of the Western and Northern Cape, specifically in the Agri-Retail and
     Manufacturing divisions. The subdued retail sector had the largest influence on the Urban
     Region Agrimarks. Notwithstanding a below average Q3, we experienced an
     encouraging uplift in Q4 to end the year strongly from both an Agri and a Retail
     perspective. The Wesgraan recovery, off the back of a good 2018 wheat harvest, realised
     the anticipated performance improvement. Mechanisation experienced a favourable
     uptick in the period under review.

     Excluding the impact of KwaZulu-Natal based Partridge Building Supplies (Pty) Ltd
     (Forge) acquired on 1 October 2018, non-agri retail sales have performed well, growing
     at 8.6% on the previous comparable period. With the exception of water storage
     categories coming off a high base last year as well as constrained cement sales, non-agri
     retail sales delivered growth of 15.4%.

     Retail fuel expansion continued through selective acquisitions. The Fuel Company grew
     annual fuel volumes, inclusive of managed sites awaiting regulatory approval, by 10.4%,
     with a strong pipeline of site acquisitions at various stages of conclusion.

     Kaap Agri continues to explore Agri, Retail and Fuel expansion opportunities.

     The Companys diversification, ongoing investment and resilience continue to generate
     strong earnings growth under the circumstances, with EBITDA increasing by 15,1%.

     The past two years have been challenging for the Company. However, we believe our
     growth strategies and resilience have delivered respectable results given the conditions
     under which we have traded. We have continued and accelerated our focus on selective
     strategic revenue generating expansion and acquisition opportunities and we remain
     committed to improving the customer experience and simplifying our business processes.
     We believe the business is suitably positioned to take advantage of an improvement in
     trading conditions and to execute in terms of our strategic imperatives.

2.   SALIENT FEATURES

     Revenue increased by 29,1% to R8,5 billion, from R6,5 billion in the prior corresponding
     period.

     EBITDA increased by 15,1% to R550,0 million.

     Earnings per share increased by 12.9% to 394,98 cents per share, from 349,80 cents per
     share in the prior corresponding period.

     Headline earnings per share increased by 14,0% to 397,85 cents per share, from 348,98
     cents per share in the prior corresponding period.

     Recurring headline earnings per share increased by 6,0% to 375,19 cents per share, from
     354,10 cents per share in the prior corresponding period.

     Total gross dividends per share increased by 5,8% to 123,50 cents per share, from 116,70
     cents per share in the prior corresponding period.

3.   DIVIDEND DECLARATION

     The directors resolved to declare a final gross dividend of 90,00 cents (2018: 84,70 cents)
     per share from income reserves in respect of the year ended 30 September 2019. The
     final dividend amount, net of South African dividend tax of 20%, is 72,00 cents
     (2018: 67,76 cents) per share for those shareholders who are not exempt from dividend
     tax. The number of ordinary shares in issue at the declaration date is 74 170 277 and the
     income tax number of the Company is 9312717177.

     The salient dates of the dividend declaration are:

     Declaration date                                           Thursday, 28 November 2019
     Last day to trade cum dividend                              Tuesday, 11 February 2020
     Trading ex-dividend commences                             Wednesday, 12 February 2020
     Record date to qualify for dividend                          Friday, 14 February 2020
     Date of payment                                              Monday, 17 February 2020

     Share certificates may not be dematerialised or rematerialised between Wednesday,
     12 February 2020 and Friday, 14 February 2020, both days inclusive.

4.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information in the full announcement (Full
     Announcement) and does not contain full or complete details. The Full Announcement
     can be found at:

     https://senspdf.jse.co.za/documents/2019/JSE/ISSE/KALE/KALSept19.pdf


     Copies of the Full Announcement is also available for viewing on the Companys website
     at https://www.kaapagri.co.za/wp-content/uploads/2019/11/2019-Condensed-Financial-
   Statements.pdf or may be requested in person, at the Companys registered office or the
   office of the sponsor, at no charge, during office hours.

   Any investment decisions by investors and/or shareholders should be based on
   consideration of the Full Announcement, as a whole.


28 November 2019

Sponsor

PSG Capital

Date: 03-12-2019 04:32:59
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