Grindrod sees revenue increase by 9.2% in 2018

Grindrod revenues decline April

For the year ended December 31, 2018, Grindrod reported Group’s revenues at R*3.4bn, a 9.2% increase on 2017. Operating profit also increased from R426 in 2017 to R452 in 2018, a rise of 5.9%. EBITDA totalled R645m in 2018, an increase of 3.63% on 2017.

Grindrod has renewed its focus on Freight Services, following Shipping’s spin-off in June 2018, and has yielded positive results. While its repositioning is ongoing, revenue generated by Financial Services has grown by 13.75% since 2017 to R536m. EBITDA for this segment was R395m, up 8.7% compared to last year.

Ports and Terminals contributed R464m to total revenues, R45m or 10.1% more than in 2017. EBITDA totalled R60.4m for 2018, a decrease of 12.7% compared to 2017.

The Logistics division revenues rose to R2.3bn, a 10.5% increase on 2017. This can be attributed to the completion of the 60,000 sq m cross-docking facility in Nacala in 2018. It is expected that at full production the Nacala facility will be containerising 30,000 tonnes of bagged graphite each month. The acquisition and integration of the NovaGroup, also strengthened the division’s position. EBITDA for this segment decreased by 22.3% from the same period last year.

In summary, the freight services division will continue to develop its facilities to enhance capacity and service offerings. The buoyant minerals market is expected to boost African trade, positively impacting the operations.  

Andrew Waller, Grindrod Limited Chief Executive Officer, said: “Grindrod Freight Services’ focus is on unlocking trade corridors. We will therefore continue to invest in strategic assets, enabling efficient logistics chains at competitive prices and overall improving Africa’s global competitiveness. The Financial Services business is focused on continued steady growth, developing a new retail business and increasing its focus on small and medium enterprises in South Africa.”

Source: Grindrod

*£1=R18.01 $1=R13.8