Farming community retailer and agri-services specialist Kaap Agri, which listed on the JSE earlier in 2017, believes it can still achieve double-digit growth in the financial year ahead despite the prolonged drought slowing business activity in the Western Cape. On Wednesday, Kaap Agri, which owns the Agrimark retail brand, reported a 12% hike in the value of business transacted to R8.6bn, with comparable stores growing turnover 9.4%. CEO Sean Walsh said the growth in the value of business transacted was spurred mainly by a 16% increase in the number of transactions, with product inflation estimated at 3.9%. Gross profit rose 18.5%, but he cautioned that the improved retail margins were expected to be partially offset by the higher growth in lower-margin fuel sales in the years ahead.
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