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KAL Group Limited (KAL) investor relations material

KAL Group Limited H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary8 May, 2025

Executive summary

  • EBITDA reached R557 million for HY 2025, down 2.1% year-over-year, with strong cash generation, improved margins, and reduced working capital; interim dividend increased by 3.7% to 56.00 cents per share, reflecting confidence in future performance.

  • Gross profit rose 0.9% to R1.66 billion, despite revenue pressure from lower fuel prices and reduced grain handling income.

  • Balance sheet strengthened with debt to equity down to 48%, and further reduction expected; CAPEX contained at R76.4 million.

  • Strategic focus remains on efficiency, market share, and footprint growth, with clear segment targets and ongoing M&A investigations.

  • AgriMark and PEG segments saw market share gains, with AgriMark rebounding in operational PBT and PEG improving margin per litre and retail spend conversion.

Financial highlights

  • Revenue for HY 2025 was R10.82 billion, down from R12.06 billion in HY 2024; recurring headline EPS decreased 3.7% to 393.65 cents.

  • Return on equity declined to 8.9% from 10.1% in the prior year period; ROIC at 7.6% (not annualized).

  • Net asset value per share increased to R48.11 from R44.66 year-over-year.

  • Net cash from operating activities was R553.6 million, down 3.1% year-over-year; inventory reduced by 6.8%.

  • Debt to equity improved to 48.4% from 56.5% year-over-year; interest cover at 4.9x.

Outlook and guidance

  • Significant improvement expected in H2 FY25, especially for Agrimark and PEG segments, with five new PEG sites and eight upgrades in the pipeline.

  • No significant improvement in economic conditions is expected short-term, but the agricultural sector remains robust with a positive production outlook.

  • Tariff issues pose a risk of 2–3% of FY25 EBITDA if unresolved, but risk is considered low due to diversification and ongoing negotiations.

  • Manufacturing segment exit targeted for this financial year, with proceeds to reduce debt and support expansion.

  • Dividend payments expected to remain strong, with a focus on improving the payout ratio.

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Frequently asked questions

KAL Group Limited, known formerly as Kaap Agri, is a diversified company operating primarily in the agricultural, manufacturing, retail, and fuel & convenience sectors within South Africa and Namibia. KAL Group's operations are segmented into four primary divisions: Agrimark, The Fuel Company, Agrimark Grain, and Manufacturing. These divisions collectively offer a wide range of products and services, including production inputs, mechanization equipment, retail fuel offerings, grain product sales and services, and the manufacture and sale of irrigation equipment and plastic bulk bins for the agricultural market. The company has a rich history dating back to 1912 and is headquartered in Paarl, South Africa. Its shares are listed on the Johannesburg Stock Exchange (JSE).

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