This article was first published gurufocus.
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Income: Core revenue up 1%
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EBITDA: increased by 13% to ZAR2.3 billion.
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Main earnings: increased by 17% to ZAR1.2 billion.
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Cash from operations: Generated ZAR2 billion with an EBITDA cash conversion rate of 1.3x.
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Cash Reserves: Holding ZAR3.9 billion at year end.
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Ordinary Dividend: Total ZAR0.482 per share, an increase of 21%.
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Special Dividend: ZAR0.43 per share, returning 49% of non-core earnings to shareholders.
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Total Shareholder Returns: ZAR862 million for the full year.
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Port and Terminal Volume: Maputo port achieved 15.2 million tonnes; Matola Terminal reached 9.9 million tonnes.
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Net Profit: ZAR2.1 billion is attributable to ordinary shareholders, up 559% from the previous year.
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EBITDA Margin: Improved to 30% for FY 2025.
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net debt: The year ended with a net cash position of ZAR699 million.
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Capital expenditure: ZAR1.5 billion, of which 81% is expansionary.
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effective tax rate: 31% for the group.
Release Date: March 06, 2026
For a full transcript of the earnings call, please visit full earnings call transcript.
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Grindrod Limited (JSE:GND) achieved a record lost time injury frequency rate of 0.16, demonstrating a strong commitment to safety.
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The company delivered record volumes at its Maputo and Matola terminals with growth rates of 6% and 22% respectively.
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EBITDA increased 13% to ZAR2.3 billion, driven by a 17% increase in headline earnings to ZAR1.2 billion.
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Grindrod Limited (JSE:GND) declared an ordinary dividend of ZAR0.252 per share, representing an increase of 21%, and declared a special dividend of ZAR0.43 per share.
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The company ended the year with a net cash position of ZAR699 million, with a largely ungeared balance sheet and debt capacity of approximately ZAR4.5 billion.
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The logistics segment faced headwinds, with revenue and EBITDA declining by 10% and 18%, respectively.
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Commodity prices witnessed a decline, which put pressure on the transport broking business.
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Graphite operations slowed, although recent market developments point to a recovery.
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South Africa's economic growth at 1.3% is still below the rate needed to mitigate structural economic challenges.
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The company experienced a significant decline in Mozambique's economic performance, with growth of 1.1%.
Why: What hedging strategies exist to manage US dollar or foreign currency risk? A: Fatima Aly, CFO, explained that Grindrod's significant businesses in Mozambique are operated in US dollars, thereby reducing foreign exchange risk. Costs are immediately eliminated in local currencies within the working capital cycle. Capital expansion is financed in the entity's functional currencies to avoid volatility. The company is naturally hedged, and forward cover is used when needed.
Why: Is there any impact expected from the current Middle East conflict? A: CEO Kwazi Mabaso said geopolitical risks are unpredictable, but Grindrod focuses on controllable factors. The company monitors commodity prices, which have a direct impact on their operations. The recent increase in coal prices has led to an increase in volumes at their Navitrade facility.
Why: What is the outlook on chrome volumes given the government support for the domestic ferrochrome sector? A:CEO Kwazi Mabaso said the mere discussion of processing and shipping ferrochrome could increase demand, as ferrochrome also passes through their port. While chrome ore volumes may be down, demand remains strong, potentially increasing Zimbabwe's market share.
Why: What is the medium-term margin outlook in each segment, and what is the net debt outlook given the strong balance sheet and growth ambitions? A: CFO Fatima Aly said port and terminal margins are expected to remain stable at 44%, with logistics margins at a minimum of 25%. The net debt position is expected to reduce due to dividend announcements, but the company is in the growth phase. Grindrod aims to maintain a net debt-EBITDA ratio of 2x, which can potentially be increased to 2.5x for compelling opportunities.
Why: What is the short- and medium-term outlook for the logistics segment, and how can resources be optimized? A: CEO Kwazi Mabaso explained that the logistics segment includes rail, graphite, container, road transport and ship agency businesses. Improvements are expected in graphite operations and rail deployment. The company is focusing on increasing rail deployment rates and optimizing container operations.
Why: What is the expected timeline for the PSP opportunity at Richards Bay Dry Bulk Terminals? A: CEO Kwazi Mabaso said the RFQ process will close in August, with the RFP process starting after that. Grindrod is ready for the occasion and ready to participate.
Why: Are you looking to reduce interest-bearing debt with the cash you have? A: CFO Fatima Aly noted that Grindrod is restructuring its loan into a common terms arrangement with the main bankers, aiming to reduce the interest burden by ZAR40 million over the loan term.
Why: To what extent could the dredging program and the Matola upgrade constrain volumes in the short term? A: CEO Kwazi Mabaso assured that a modular approach is being adopted to minimize disruption during the execution of the dredging program and Matola upgrade.
Why:What is the guidance for CapEx in 2026, and how much of it is fixed? A: CFO Fatima Aly indicated that the authorized capex is approximately ZAR1.2 billion, mainly for the port and terminals. A significant portion is contracted, but cash flow timing can be controlled depending on the progress of the project.
Why:Can you provide information about the top destinations for coal and chrome exports? A: CEO Kwazi Mabaso said the magnetite is mainly destined for China, while the coal is exported to South Asia and parts of Europe. Chrome follows similar routes, primarily to China and South Asia.
For a full transcript of the earnings call, please visit full earnings call transcript.
