Kaap Agri reports revenue growth; returns to normal dividend payments


FIFI PETERS: Kaap Agri, a company that specializes in agribusiness and oil-related products, contributed R11.10 per share during the period. This is more than double the payoff in 2020. This is the case when the group’s revenue jumped 23% to R10.6 billion, and profits exceeded the pre-epidemic epidemic.

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Let’s talk to Sean Walsh, CEO of Kaap Agri to re-examine the numbers. Sean, thank you so much for your time. What makes your profits so strong, and how does this growth sustain you?

SEAN WALSH: Good evening, Fifi, and thank you. Yes, we believe in stability. We see that our approach to multiculturalism over the past few years provides – [with] Agri Retail employment growth is 14%, commercial activity growth is 18%, and oil growth is 13% this year, with growth of one liter and 12% expected next year. We see that divisively, we have a lot of stars this year, and that all the channels are working well for us.

FIFI PETERS: As you grow older and grow older before the epidemic, you can say that your business is free of the epidemic, as we discuss the news and confirm new availability. [Covid] the difference here in South Africa?

SEAN WALSH: Well, we have been fortunate that throughout the epidemic agriculture has stabilized, and has done well. We provide input into the region and therefore we cannot say that the epidemic is in the ways we find it. Yes, it can have an effect on the financials we sell, but what we have found is that we are stable, we have reset our money. Our operating costs are the same now that they were before the epidemic. That is why this clever strategy is reflected in our picture and I believe we can survive some obstacles. But I hope they will be lighter than ever.

FIFI PETERS: What also appears in your performance, Sean, is the way you live and deal with the inflation storm. We’ve heard many companies talk about how difficult things are at higher prices, but you have managed to stop the price pressures, especially lower prices coming from the oil sector, and the price of oil or Brent. crude jumped about 80% last year. What does this mean? Does this mean that this is delayed in your numbers right now, and that the results are still visible?

SEAN WALSH: I think there has been, in terms of the amount of fat, the epidemic recovery in these numbers. Although we have been very careful in predicting next year’s oil prices, what we find is changing the purchasing system where the average middle-income earner, who makes a budget of R200 per week on his fuel still has R200 per week, and now it is more expensive; so they are forced to buy less liters. So yes, I think we feel that the amount of fuel we buy in the coming year. But fortunately for us, what we do in the oil industry is a difference between agriculture and ordinary consumers. I think what we play in our hands is our best way to deliver fuel instead of fuel.

FIFI PETERS: You have a guide that you will be choosing when looking for opportunities to earn money out there. Do you have anything on the table that you are reviewing?

SEAN WALSH: Fifi, pa. We have already signed one of the oil pipelines for the oil company, which will launch in the first half of next year. We are then exploring other opportunities on the site and continuously, as you know, we have expanded our activities over the years, and will continue to do so.

There are some exciting things going on in the business and business with our customers. as well as the business side for the customer in terms of e-commerce.

FIFI PETERS: This is an exciting opportunity – are you all in South Africa, or are you looking out for the rest of the world?

SEAN WALSH: Fif yes, I may sound very different from others, but we hope there is a great opportunity to grow in South Africa. We hope our market has not been overwhelmed by the many channels we use. That is why my team is committed to expanding the market share in modern markets, where we are working on our growth strategies.

FIFI PETERS: How much money did you set aside to purchase?

SEAN WALSH: Fifty, about two or three years ago we were spending R250-plus [million] capex per year. We reduced that by a year and a half by R120 or R130 million. We might as well carry that a little farther.

Keep in mind that we have just entered into an agreement to sell our 21 products at TFC or The Fuel Company, which will earn R450 million in the first half of next year and this puts us on a very small loan. I think by the end of the first half of next year our mortgage rates will be at the 2017 level, which gives us a chance to have a solid investment to grow the business.

FIFI PETERS: Based on the online business delivery you mentioned earlier, what are some of the strategies for promoting this aspect of the business? How much money are you making to make digital Kaap Agri?

SEAN WALSH: It is interesting that we are following a proven track record to make a real store next year. We are busy with our guide right now, and hopefully we will be launching, by the end of next year, an online shopping site for customers with geo, closely related to Takealots and other offerings from retailers.

FIFI PETERS: Very interesting. We look forward to this launch, Sean. But let’s stop there, sir. Sean Walsh is the CEO of Kaap Agri.


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