Grindrod gears for growth after Covid-19 hits interim earnings

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Grindrod notes better trading profit, but Covid-19 still had effect

Grindrod will shift from cash preservation mode to improving volumes in the second half of its 2020 fiscal after the freight group — one of the biggest in Africa — reported a more than 86% drop in interim earnings as countries imposed travel restrictions.

“While the short-term focus was on the cash flow, the focus of the second half will be on improving volumes,” the company said in a results filing that showed headline earnings slumped 86% to R23.4m. The Durban-based company, which also owns ports, terminals and tankers, said freight volumes at its Maputo port fell 5% to 9.3-million tonnes, but any outlook for improved volumes in the second half would be dependent on a solution to the congestion at the Komatipoort border gate between SA and Mozambique, which is affecting the mineral cargo flows into the port.

Cash generated from operations rose 40% to R507.4m in the group’s six months to end-June. The company sold ailing companies with no prospect of recovery.

 

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