Santova (SNV) H2 2026 earnings summary

Executive summary

• Faced a challenging global trading environment with lower freight rates, new tariffs, and geopolitical volatility impacting earnings, especially in the US, Asia-Pacific, and South Africa.

• Integration of the Seabourne Group (acquired May 2025) is materially complete, enhancing geographical diversification and e-commerce capabilities.

• Group demonstrated resilience, recovering from a 23.4% H1 NPAT drop to a 7% YoY decrease for the full year.

• Offshore revenue rose to 84.6% of total, reflecting successful international expansion.

Financial highlights

• Consolidated net profit after tax (NPAT) decreased 7.1% to R137.6 million; basic EPS down 7.6% to 106.59c.

• Revenue and net interest income increased 88.3% to R1.2 billion, driven by Seabourne's inclusion.

• Operating margin declined to 16.9% (from 30.6%) due to lower-margin fulfilment and courier services.

• Net cash from operating activities rose 170.9% to R229 million; no dividend declared.

• Tangible NAV per share decreased 29.4% to R4.98 due to acquisition-related intangibles.

Outlook and guidance

• Expecting flat to modest global growth; businesses leveraging AI and automation are outperforming.

• Focus remains on acquisitions that fit culture and enhance digital/logistics capabilities.

• Excess capacity post-Seabourne acquisition positions the group for scalable growth.