Trading and agriculture-focused KAL Group, SA's biggest independent retail fuel and convenience operator, says it doesn't see the exit of Shell and Engen brands as a risk to its business. It's still upbeat about the prospects for an industry where it sees 1.5 transactions per second and is already carving out market share, including due to recent drop-off in enthusiasm among global carmakers for electric vehicles.
KAL, formerly Kaap Agri, reported on Thursday that revenue was flat at R12 billion in the six months to end-March, but its profit still picked up about 8% to R325 million. A strong local harvest in 2023 helped with a wheat intake that was more than a fifth higher, while robust contributions from convenience store and quick-service restaurants helped offset a 2% fall in group fuel volumes, which was also slightly better than the industry generally.
Valued at about R3.2 billion on the JSE, KAL has 267 business units spread across all nine South African provinces and Namibia. It provides services such as grain handling, but has been pushing to diversify away from just agribusiness, with about 70% of its trading profit now non-agri-related. In July 2022, the company acquired PEG Retail Holdings, consisting of dozens of retail fuel and convenience business units, bringing in a highly cash-generative business.
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