Kaap Agri's new motto: more, more
A JSE listing may be the forerunner to mergers and acquisitions
Kaap Agri, the highly profitable farming community retailer, says its upcoming listing on the JSE will prepare the company for game-changing transactions in the future. Kaap Agri has cast off its dusty agricultural co-operative status with its Agrimark stores, which are now a well-known retail brand in farming areas throughout SA. Its retail business has in recent years grown to include liquor retailing, convenience stores, fuel retailing and building supplies. Bottom-line profits in 2016 topped R216m — an astounding growth rate, considering that in the 2005 financial year profits were just R31m and in 2011 only R78m. With PSG-controlled Zeder as a major shareholder in Kaap Agri, there is an expectation that a JSE listing might be the forerunner to energetic corporate action. An investment presentation last month at the Vunani @SmallTalk conference outlined a "4M period" for Kaap Agri: "More places, more clients, more products, more margin". But Kaap Agri MD Sean Walsh stresses that...
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