Grindrod expects hefty loss, but says cash generation has improved

Freight and financial services company Grindrod says good volumes at some of its terminals helped improve trading profit in its six-months to end-June, but it still expects a hefty loss after a period when Covid-19 battered global markets.

The group described its first half performance as “resilient” in a trading update, saying it saw good volumes through both the Maputo Port and Matola terminal. The group’s sea freight business and landside container operation also saw earnings growth, the group said

The group expects its headline loss to widen as much as 104% from the prior period’s R121.1m, and saw a number of one-off adjustments.

These included dividend withholdings tax of R31.6m on repatriation of undistributed profits of $27.9m (R482m) from Mozambique, and fair-value adjustments on its private equity portfolio of R270.2m.

In morning trade on Wednesday, Grindrod’s share was up 2.81% to R3.66, giving the group a market capitalisation of about R2.8bn. The group’s share has fallen 27% in the year to date.