Grindrod Limited (Grindrod) released its financial results for the year ended 31 December 2019. Driving corridor solutions for specific customer requirements has yielded positive results. Port and Terminals and Logistics increased the focus on bulk and container corridors with increased emphasis on integrated service offerings and investments in key infrastructure. Furthermore, Grindrod Bank strengthened its traditional banking service offering, growing in the SME and property markets and developing platform solutions for the fintech market.
Headlines earnings from continuing businesses grew by 9% to R525.2 million (2018: R480.2 million). Earnings improved from a loss of R20.3 million in 2018 to R299.9 million.
Port and Terminals reported solid results, mainly as a result of strong volume performance. Earnings increased by 26% to R175.2 million (2018: R139.6 million). Overall Logistics results of R133.7 million (2018: 508.2 million) were satisfactory, with the strong performance achieved by the Intermodal and Seafreight businesses in a challenging market.
Highlights for 2019 include:
• Additional handling equipment, rehabilitation of berths and an innovative training centre contributed to the record volumes of 21 million tonnes handled at Port Maputo, up 8% on 2018;
• Record loading volumes month-on-month at Grindrod’s Matola Terminal was reported. A record 81% utilisation of its nameplate capacity of 7.3 million tonnes was reached. The terminal’s efficiencies, as well as the continuous rail efficiency improvements and strong collaboration between Transnet Freight Rail (TFR) and Mozambican Ports and Railway Company (CFM), have provided the confidence to deliver on contracted volumes.
• Return of 24-locomotives from Sierra Leonne, integration of rail partners and commercial deployment of the locomotives;
• A 61 000m²cross-dock facility is now operational in Nacala and is providing logistics solutions for the Balama and Malawi regions;
• The acquisition of strategic land in Palma has positioned the business to service the logistic requirements that will be required for the liquid gas development in the region;
• Expanded container handling facilities in Johannesburg, Cape Town, and Durban to 600 000 m² total capacity and targeting further expansion to total of 750 000m²;
“Grindrod will continue to develop customer solutions, securing contracted volumes and expand its footprint along strategic trade corridors by investing in infrastructure and people,” said Andrew Waller, CEO Grindrod Limited.
Ends
For further information:
Please contact Alison Briggs
+27 83 419 2970
+27 31 302 7113