Grindrod optimistic as operations pick-up
Freight and financial services company Grindrod said on Friday that it expects an improvement in the second half of the year because of the easing of lockdowns, which will result in a pick-up on the company’s operations.
“While the short-term focus is as on the cash flow, we anticipate an improving second half in which we will redouble our efforts to execute on solutions to enable Southern Africa’s products to compete in the world,” the company said.
Grindrod said in a business update on Friday that it saw strong trading in most of its operations for the first quarter of the year while lockdown measures in parts of Southern Africa weighed significantly on revenue in the second.
The company said it has started ramping up mineral rail cargo flow to the Matola and Maputo terminals as international borders reopen.
Grindrod said mineral cargo flows have resumed with its port and terminals operating under strict conditions, despite Mozambique being under a state of emergency until June 30.
Commodity flows in May were at 0.3-million tonnes for Matola wit total terminal throughput at 0.6-million, just 45% of the usual monthly capacity.
“We remain committed to the execution of the growth strategy, unlocking trade corridors in Southern Africa, and creating a focused bank with an effective retail platform,” Grindrod said.
At 4.11pm, Grindrod’s share price was down 0.63% to R3.16; it has fallen 36% so far this year.