Grindrod (GND) H2 2024 earnings summary

Executive summary

• Delivered resilient performance in FY 2024 despite challenging macroeconomics and soft commodity prices, with strong safety improvements and strategic focus on core logistics and infrastructure assets.

• Maintained EBITDA margin at 27% on ZAR 7.4 billion revenue; headline earnings per share at ZAR 1.504, down 26% year-on-year.

• Final dividend of ZAR 0.17 per share, total ZAR 0.40 for the year, in line with dividend cover guidance.

• Strategic focus on bulk, logistics, container, and rail segments, with ZAR 8 billion investment pipeline and major projects in Mozambique and South Africa.

Financial highlights

• Core business revenue ZAR 7.4 billion; EBITDA margin 27%, stable from H1 2024.

• Headline earnings ZAR 1,004 million, down 26% year-on-year; earnings per share ZAR 1.504.

• Cash generated from operations ZAR 784 million; net debt increased 26% to ZAR 1.5 billion.

• Dividend cover maintained at 3x–4x core headline earnings.

• Non-core segment losses of ZAR 725 million, mainly from property write-downs and private equity.

Outlook and guidance

• Medium and long-term growth prospects remain strong, with ZAR 8 billion investment pipeline focused on bulk, logistics, and rail.

• Short-term environment expected to remain volatile due to commodity price pressures and macroeconomic uncertainty.

• Targeting EBITDA margins of 35–40% in core bulk and logistics projects; hurdle rates for new projects set at 16–18%.

• No specific volume or price guidance for H1 2025; pre-close statement to be provided before interim results.