TRADING UPDATE
Sales grow at Kaap Agri in face of drought
Recently listed farming community retailer Kaap Agri has managed to keep the profit taps open despite a water-shortage crisis afflicting areas in its Western Cape heartland. A trading update issued on Wednesday showed Kaap Agri — which has PSG-aligned Zeder Investments as a major shareholder — increasing sales for the year to end-September almost 13% to R8.6bn. The company, which is expanding rapidly into the rest of SA and Namibia, reported comparable growth of almost 10%. Sales growth was driven mainly by a 16% increase in the number of transactions processed during the financial year, Kaap Agri directors said. The company estimated product inflation at 3.9%. The trading update buoyed the weak Kaap Agri share price, rising 2.29% to R49.15 by mid-afternoon. The share made its market debut at midyear, when the shares peaked at R63. Kaap Agri’s diversification strategy, as well as investment into improvements, upgrades and acquisitions, continued to generate strong earnings and share...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.