Agriculture group Kaap Agri says net profit rose 3% in the six months to end-March, as the company’s recovery from drought conditions in the Western Cape continues. The company, which trades in the agricultural, fuel and related retail markets in Southern Africa, said half-year revenues were up 28.7% to R4.4bn, upping its dividend 4.7% to 33.50c per share. The results were as expected, but Kaap Agri’s second half is expected to be much better, said Anthony Clark, independent analyst at Small Talk Daily Research. This is largely due to the wheat harvest being late, and the earnings benefit now expected to register in its second half, Clark said. Kaap Agri said on Friday its recovery from the Western Cape drought has been slower than anticipated. However, the addition of the Forge business in KwaZulu-Natal, and market share gains in the inland region, “have positively impacted the trade division”.

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