FARMERS’ retailer Kaap Agri managed to keep its cash flows pouring in the year to end September despite drought conditions affecting some of its main markets in the Western Cape.
Kaap Agri – which operates Agrimark stores – showed a 16% hike in profits to R183m (259c/share) from a 9% increase in turnover to R7bn.
MD Sean Walsh did, however, warn that agricultural conditions in the Swartland grain production area were under severe pressure with only one third of the normal rainfall levels being recorded.
He estimated the wheat crop at around 40% below average – a development that would hamper Kaap Agri’s grain handling and storage revenue.
But Walsh noted that Kaap Agri’s growth strategy had exceeded its 15% growth target for the fourth year in a row. “Measured over the four-year period, the total increase in headline earnings of 133% translates into a compound annual growth rate of 23,5% per annum.”
By Jenni McCann