Market brushes off Kaap Agri’s quarterly decline in revenue
Shares in JSE-listed Kaap Agri rose the most in more than four weeks on Thursday after it reported improved performances at some of its businesses.
The stock closed almost 8% up to R23, giving it a market cap of R1.706bn.
The agricultural services business, which is controlled by Zeder Investments, reported in a trading updated for the three months to June a 19.6% decrease in revenue, while headline earnings and recurring headline earnings ended 20.7% and 18.1% down, respectively. Like many companies in SA, Kaap’s trading suffered during the Covid-19 lockdown.
It said revenue is yet to return to previous levels and that the decline in foot traffic associated with the lockdown is likely to have an ongoing impact on earnings for the remainder of the financial year.
“The full longer-term impact of Covid is still uncertain and we have implemented a range of actions intended to mitigate some of the effects,” the company said in statement.
It warned that “the last three months of the financial year will remain challenging. Good recent rainfall bodes well for the wider agricultural environment. It remains to be seen what the long-term effects of Covid will be on general consumer behaviour, however, recent performance in both the retail and fuel space reflects an improved trend,” the group said.
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