Grindrod reports solid operating performance


Grindrod reports solid operating performance


Published Date: 2021-03-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Grindrod reports solid operating performance

The freight, logistics and financial services group says its core operations performed well despite Covid-19.

Grindrod says its Ports, Terminals, and Logistics businesses recovered well in the second half of last year, resulting in solid results from its core operations. However, it still reported a full-year loss due to impairments and fair value losses on its private and property equity portfolio.

Releasing results for the year to end-December, the freight, logistics and financial services group said Ports and Terminals maintained earnings before interest, tax, depreciation, and amortisation (EBITDA) at 2019's levels as the weaker rand and strong recoveries in the final quarter of the year offset a decline in volumes across the business.

Its coastal shipping, container depots and multi-purpose terminal businesses achieved earnings on the back of increased shipping activities, a buoyant citrus season and strong mineral volumes. And its presence in Northern Mozambique as a key logistics corridor player in the liquefied natural gas (LNG) project development also yielded positive results. It has expanded its service offering to operate seven vessels, transport, shore-side equipment and stevedoring to provide effective supply chain solutions to the region. The focus for its Rail remained on securing deployment opportunities off its low-cost asset base.

Over the course of the year, it said Grindrod Bank delivered a profitable result in a challenging market. The bank focused on its client relationships and quality lending during the period, ensuring it retained a strong liquidity and capital position. It also continued to focus on platform banking solutions and SME strategies.

For the year, revenue from core operations declined by 1% to R4.8 billion and EBITDA declined by 4% to R1.36 billion. Profit attributable to shareholders came in 4% higher at R329 million. However, the group as a whole incurred a loss of R415 million for the period, mainly due to impairments and fair value losses. Its headline loss widened by 10% to R168 million, resulting in a headline loss per share of 24.8c.

Grindrod's shares closed 2.6% down at R4.85 yesterday.


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