KAL GROUP LIMITED
(Previously Kaap Agri Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2011/113185/06)
Share code: KAL
ISIN: ZAE000244711
(“KAL” or “the Company” or “Group”)



CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 MARCH 2023



1.   INTRODUCTION

     The first six months of the 2023 financial year (“H1”) were dominated by poor economic
     conditions and the ongoing and continuous high levels of loadshedding. The negative effects of
     loadshedding, both in terms of direct costs as well as indirect costs (lost turnover) are being closely
     monitored and action plans are in place to partially mitigate the financial impact. The long-term
     wellbeing and sustainability of the KAL business and our stakeholders remains our number one
     priority.

     During H1, the Group, bolstered by the inclusion of the non-like-for-like contribution of PEG Retail
     Holdings (Pty) Ltd (“PEG”), generated strong revenue growth across the fuel and convenience
     channel whilst pressure remained on general retail and agricultural category growth. The addition
     of the 41 PEG business units contributed to Group fuel volumes increasing by 102.8%, with further
     market share gains in the original TFC business units as well as through Agrimark fuel channels.
     The building material sector has shown a severe downturn but despite being down year-on-year,
     our various building material categories have outperformed the sector. Whilst still high, fuel and
     fertiliser inflation pulled back, however packaging material and a number of other key categories
     experienced increased inflation. The growth in Group revenue was underpinned by a 183.6%
     increase in the number of transactions (4.0% increase excluding PEG).

     Below average rainfall towards the end of the 2022 wheat season resulted in a more normalized
     wheat harvest compared to the prior year. Concerning trends in the agri environment including
     high input costs, curtailed capacity expansion and infrastructure spend and ongoing port logistics
     challenges, specifically export related, continued. The fruit and vegetable sectors have been
     severely dampened by loadshedding costs, weather events and increased input costs due to
     inflationary pressures. The retail sector has struggled off the back of higher interest rates reducing
     disposable income and industry wide fuel volume pressure has intensified.

     The ongoing impact of the Russia / Ukraine conflict, which has negatively impacted farming input
     costs, specifically fertilizer and fuel, is expected to continue for the foreseeable future. Although
     the the overall agriculture outlook in the areas in which we operate is stable, producer cashflow
     pressure is expected to continue. Weather patterns are being closely monitored as the likelihood
     of El Nino seems to be increasing.

     Moderate growth and margin pressure in general retail is expected, with fuel prices and other
     inflationary pressures dampening this sector. The building material sector is expected to continue
     to struggle. It is expected that pressure will remain on fuel volume sales partly offset by constantly
     improving convenience and quick-service-restaurant spend. Manufacturing performance is
     expected to be subdued as a result of a slowdown in infrastructural expansions.
     In line with previous years, the first six months’ earnings are expected to contribute more to full
     year earnings than the second six months. Whilst there are many challenges, KAL has proven to
     be resilient throughout and continues to push hard to achieve its stated medium-term growth
     objectives. Management are cautiously optimistic regarding the performance of the business
     during the coming six-month period given the current economic and power supply challenges.

2.   SALIENT FEATURES

     Revenue increased by 68.4% to R12.09 billion, from R7.18 billion in the prior corresponding
     period.

     EBITDA increased by 30.9% to R521.3 million, from R398.3 million in the prior corresponding
     period.

     Earnings per share increased by 4.3% to 382.29 cents per share, from 366.56 cents per share in
     the prior corresponding period.

     Headline earnings per share increased by 11.6% to 381.09 cents per share, from 341.61 cents per
     share in the prior corresponding period.

     Recurring headline earnings per share increased by 8.7% to 381.64 cents per share, from 351.11
     cents per share in the prior corresponding period.

     An interim dividend of 50.00 cents per share has been declared for the six months ended
     31 March 2023 (2022: 46.00 cents per share), resulting in an increase of 8.7% from the prior
     corresponding period.

3.   DIVIDEND DECLARATION

     A gross interim dividend of 50.00 cents per share (2022: 46.00 cents per share) has been approved
     and declared by the board of directors of the Group from income reserves for the six months
     ended 31 March 2023. The interim dividend amount, net of South African dividends tax of 20% is
     40.00 cents per share for those shareholders not exempt from dividend tax or who are not entitled
     to a reduced rate in terms of the applicable double tax agreement.

     The salient dates for this dividend distribution are:
     Declaration date                                                           Thursday, 4 May 2023
     Last day to trade cum dividend                                             Tuesday, 6 June 2023
     Trading ex-dividend commences                                            Wednesday, 7 June 2023
     Record date to qualify for dividend                                          Friday, 9 June 2023
     Date of payment                                                           Monday, 12 June 2023

     The number of ordinary shares in issue at declaration date is 74 319 837 and the income tax
     number of KAL is 9312717177.

     Share certificates may not be dematerialised or rematerialised between Wednesday, 7 June 2023
     and Friday, 9 June 2023, both days inclusive.

4.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It contains
     only a summary of the information in the full announcement (“Full Announcement”) and does
     not contain full or complete details. The Full Announcement can be found at:
     https://senspdf.jse.co.za/documents/2023/JSE/ISSE/KALE/KALMar23.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website at
    https://www.kalgroup.co.za/s3/attachments/interim-results-31-march-2023.pdf
    or may be requested in person, at the Company’s registered office or the office of the sponsor, at
    no charge, during office hours.

    Any investment decisions by investors and/or shareholders should be based on consideration of
    the Full Announcement, as a whole.

    The condensed consolidated interim financial results have not been audited or reviewed by the
    Company’s auditors.



Paarl
4 May 2023

Sponsor

PSG Capital