Picture: ISTOCK
Picture: ISTOCK

Kaap Agri said on Thursday it was able to grow its sales in the six months to March despite the crippling drought in the Western Cape, which is home to some of its clients.

The PSG Group-aligned company operates predominately in the agricultural space‚ though it also owns a fuel company as part of its diversification strategy.

Group revenue for the review period was up 5% to R3.42bn, Kaap Agri said in a trading statement. But comparable like-for-like sales rose a modest 2.9%.

The growth in the value of business transacted was driven mainly by a 17.1% increase in the number of transactions. Product inflation was estimated at 3.7%.

The drought in the province played out negatively particularly for Wesgraan‚ which encompasses grain handling and storage of grain and related products, seed processing and potato seed marketing.

“Non-agri retail sales continue to show strong growth despite subdued consumer spending and low economic growth,” the company said.

Kaap Agri is expanding its retail fuel sites across SA, which it says will contribute to the group revenue line.

The share price was flat to R47.90 in early trade on the JSE, giving the company a market value to R3.6bn.