Calgro M3 (CGR) H1 2027 earnings summary

Executive summary

• H1 revenue rose to R465.668m from R460.030m and gross margin held at 29.46%; profit after tax fell to R75.623m from R79.995m, with EPS affected by a one-off IFRS 9 loan modification loss.

• Strategy focused on non-core asset disposals, integrated residential developments, Memorial Parks expansion and long-term debt reduction; infrastructure investment increased debt and cash use.

• Memorial Parks grew strongly while residential revenue remained broadly stable amid constrained end-user demand.

Financial highlights

• Revenue was R465.668m versus R460.030m; gross profit was R137.180m versus R135.376m, and gross margin was 29.46% versus 29.43%.

• EBIT was R79.346m versus R97.655m; profit after tax was R75.623m versus R79.995m. EPS and HEPS were both 78.99 cents, versus 83.00 cents and 82.86 cents, respectively.

• Net cash used in operating activities was R159.920m versus R88.382m; period-end cash was R52.308m.

• Cash utilised from operations was R110.30m versus R50.63m; construction contracts increased to R2.40bn from R2.11bn at February 2026.

• Net finance income was R10.085m; share of JV profit was R11.669m versus R14.356m.

Outlook and guidance

• Priorities include non-core asset disposals, strategic infrastructure investment, net-debt reduction and Memorial Parks expansion; long-term debt reduction is supported by asset sales.

• Constrained affordable-housing demand and municipal approval uncertainty may persist; serviced opportunities and guaranteed offtake support sales-led construction.

• Bankenveld District City phase 1 bulk and link infrastructure is on track for Q1 FY2028 completion, with internal infrastructure planned to follow.

• Target ROIC is 15% over five years; the dividend policy is to be reassessed at FY-end.