Half Year 2024 Grindrod Ltd Earnings Call Transcript
Key Points
- Grindrod Ltd (GRDLF) reported a core EBITDA of ZAR1 billion for the first half of the year, indicating strong operational performance.
- The company achieved a significant 18% increase in port volumes at Maputo, reaching 6.9 million tonnes, which is a record performance.
- Grindrod Ltd (GRDLF) has successfully redeployed 13 locomotives from Sierra Leone to South Africa, which is expected to enhance rail operations.
- The logistics segment saw a 38% earnings growth, driven by strong performance in ships agency and clearing and forwarding businesses.
- The company declared a dividend of ZAR0.23, reflecting disciplined capital allocation and a 13% increase in cash generated from operations.
- The overall revenue for Grindrod Ltd (GRDLF) remained flat, with a slight 1% dip period-on-period, due to reduced earnings from value-added services.
- EBITDA margins in the ports and terminals segment decreased from 30% to 28%, impacted by lower volumes and adverse weather conditions.
- The coal segment, a significant part of the company's portfolio, remained depressed, affecting overall performance.
- The company faced challenges in the container business due to logistics constraints and declining rates, impacting throughput.
- Grindrod Ltd (GRDLF) reported a net loss of ZAR80 million in its non-core business, driven by reduced earnings from the marine fuel business and fair value losses in the private equity portfolio.
Good morning, everyone. Ladies and gentlemen, thanks for joining us this morning on our results. I know you always criticize that we don't share the information a day before for you to grill us, that's done on purpose. So -- but as normal, we will be available next week for those who've got specific questions for us to which we can respond. And we will take questions this morning as well. I'm not sure if we've got anyone listening in. But they will be processed at the end of the presentation for you to ask us questions. And those will largely be handled by Fathima.
We can start. Before I start, there's exciting news for us. We -- as you know, we are operating in Sierra Leone. We had an iron-ore contract, and we had 13 locomotives that were deployed there. We -- I think over the duration of the contract, which is just less than three years. We've done 18 million tonnes. In fact, first five months of this year, we did over 3 million tonnes, hauling from the mine in Tonkolili to the terminal.
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