Grindrod reported resilient interim results in August, with trading profit up by 10% compared to the first half of last year and cash generated from operations up 40% on the prior year. The COVID pandemic did impact our revenue, which was down by 5% from the previous year. Our balance sheet continues to be strong.
The pleasing financial results were on the back of an excellent first quarter and the exceptional work done by the various teams across our divisions. Some divisions provided essential services and continued operating throughout the lockdown period.
Some other ‘wins’ included:
Excellent volumes through the Maputo Port and Matola Terminal. Matola Terminal volumes increased by 13% on June 2019.
After several years Grindrod’s terminal facilities in Richards Bay commenced sulphur rail despatch to Zambia. The rail bodes well for the strategic unlocking of the North/South corridor into and out of Richards Bay, which will attract additional cargo flows to the Port of Richards Bay. Investment in the Richards Bay facilities during 2019 and 2020 was strategic for unlocking the bi-directional traffic flow of sulphur, copper concentrate, and fertiliser as primary commodities.
The Seafreight and its landside container operation achieved earnings growth of 30% compared to the same period in 2019. Furthermore, the business has acquired additional space in Port Elizabeth and a long-term tenure at its Maydon Wharf facilities.
Further alignment of our service offering along the trade corridors has facilitated various logistics solutions such as the rail transportation of copper concentrate from Zambia to South Africa and on to global markets.
Grindrod has established operations in Pemba and Cabo Afungi, where trucks and the four-chartered vessels are loaded and off-loaded for deliveries to and from the Cabo Delgado Province to support the LNG industry.
Further to this, Grindrod acquired the rights to a strategically located plot of land near Palma and will develop a facility to support containerised and break-bulk cargo transportation.
Locomotives and wagons have now been deployed on the Dar es Salaam corridor.
Grindrod Bank reported a significant increase in core deposits during the second quarter while under the COVID-19 pandemic.
During the second half of 2020, Grindrod will continue precautionary measures across all businesses in response to COVID-19, ramp up the development of assets, focus on efficiencies across supply chains, and diversify across commodities. Our strategic focus remains on unlocking key corridors by investing in infrastructure and working with customers to find the most efficient and cost-effective logistic solutions.
For further information on Grindrod’s interim results, please visit www.grindrod.com and check out the ‘Interim Results’ page and the relevant press release.