Agri-services conglomerate Kaap Agri fuels the future
The conglomerate aims to double income from fuel
Agri-services conglomerate Kaap Agri, which listed on the JSE in June 2017, aims to double revenue generated from fuel operations in three years. Interim results released on Monday showed Kaap Agri’s fast expanding fuel operations, which trade under The Fuel Company (TFC) banner, increasing revenue in the half-year to end March by 26% to R842m. Operating profit came in 6% higher at almost R37m. Kaap Agri CEO Sean Walsh said significant revenue growth was realised in TFC from owned and managed fuel retailing sites. He said substantial investment had been made into centralised procurement and operational support services to drive margin optimisation. Walsh said that continued strong growth was expected, with TFC’s fuel volumes growing 40.5% and with additional site acquisitions at various stages of conclusion. Compound annual growth Walsh said TFC was capable of achieving a compound annual growth rate of 25% over the next three years. "We will probably double the size of the fuel busi...
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