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



CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
31 MARCH 2022



1.   INTRODUCTION

     The first six months of the 2022 financial year generated strong revenue growth across the agri
     and fuel channels whilst pressure remained on retail category growth. TFC retail fuel sites
     experienced a slow and continued post-Covid recovery in retail fuel volumes, with fuel site
     convenience and quick service restaurant performance also improving. Kaap Agri grew revenue
     by 26.7% to R7.2 billion, up from R5.7 billion in the previous comparable financial period, with like-
     for-like comparable revenue growth of 22.9%. Group revenue growth was underpinned by
     increased inflation in most categories with exceptionally high year-on-year inflation in fuel,
     fertilizer and chemical commodities. The growth in revenue was also driven by a 7.7% increase in
     the number of transactions. Product inflation, excluding the impact of fuel price inflation, is
     estimated at 9.2%.

     The impact of the 2021/22 wheat season has been positive and agricultural conditions for the
     upcoming wheat season look encouraging, although always weather dependant. Fruit and
     vegetable production has largely been positive, however, significant expansions and
     infrastructural spend in these sectors have been dampened by weather events and increased
     input costs due to inflationary pressures.

     Fresh fruit exports may be under pressure this year due to additional supply chain related costs
     and lower market prices. Logistical challenges persist, however, ongoing collaboration between
     Transnet, logistics operators and farming businesses is expected to assist in improving port
     efficiency. Industry-wide fuel volume pressures have increased due to consumer resistance as a
     result of the higher fuel prices.

     Group fuel volumes decreased by 1.3%. Although fuel volumes at TFC sites reduced by 4.7%, a
     slow and continued post-Covid recovery in retail fuel volumes is being experienced, with fuel site
     convenience and quick service restaurant performance also improving. Market share gains have
     been made in non-TFC fuel volumes due to our ability to deliver and our product availability.

     The overall agriculture outlook is stable to positive, however, wine grape producer cashflow
     pressure is expected to continue. Although weather patterns have been volatile, the damage to
     inland crops will have minimal influence on the performance of the Group. The agricultural sector
     may endure more challenging conditions this year and going into 2023 with the outlook not only
     dependent on general weather conditions but also rapidly rising input costs, particularly fertilizer.
     The recent excessive rainfall and flooding experienced in large areas of KwaZulu-Natal (“KZN”)
     had a minimal impact on our KZN operations. The full impact of the Russia/Ukraine conflict is yet
     to realize with sanctions potentially limiting South Africa’s exports into these markets. Another
     key concern is that Russia is the world's leading exporter of fertilizer materials.

     Moderate growth in general retail is expected, with fuel prices and other inflationary pressures
     dampening this sector. Quick service restaurant performance continues to recover slowly.
     Once the PEG transaction becomes unconditional and is implemented, it is expected to contribute
     three months’ performance during the current financial year.

     Although the impact of Covid has reduced, we remain cautious regarding the potential impact of
     further Covid infection cycles.

     In line with previous years, the first six months’ earnings will contribute more to full year earnings
     than the second six months. Management is positive regarding the performance of the business
     during the coming six-month period. The overall Group performance is expected to be in line with
     management’s upper range of medium-term targets.


2.   SALIENT FEATURES

     Revenue increased by 26.7% to R7.2 billion, up from R5.7 billion in the prior corresponding period.

     EBITDA increased by 13.0% to R398.3m from R352.4m in the prior corresponding period. Prior to
     30 September 2021, EBITDA was calculated by including interest received but excluding interest
     paid. The calculation of EBITDA has been changed to exclude both interest received, and interest
     paid as this is deemed to be a better reflection of the true operational performance of the Group
     and an improvement in disclosure. Comparable EBITDA performance has been updated with this
     improvement in methodology.

     Earnings per share increased by 22.0% to 366.56 cents per share, from 300.39 cents per share in
     the prior corresponding period.

     Headline earnings per share increased by 13.9% to 341.61 cents per share, from 299.96 cents per
     share in the prior corresponding period.

     Recurring headline earnings per share increased by 15.0% to 351.11 cents per share, from 305.34
     cents per share in the prior corresponding period.

     An interim dividend of 46.00 cents per share has been declared for the six months ended 31 March
     2022 (2021: 40.00 cents per share).

3.   DIVIDEND DECLARATION

     A gross interim dividend of 46.00 cents per share (2021: 40.00 cents per share) has been approved
     and declared by the Board from income reserves for the six months ended 31 March 2022. The
     interim dividend amount, net of South African dividends tax of 20% is 36.80 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                                                             Tuesday, 10 May 2022
     Last day to trade cum dividend                                                Tuesday, 7 June 2022
     Trading ex-dividend commences                                               Wednesday, 8 June 2022
     Record date to qualify for dividend                                            Friday, 10 June 2022
     Date of payment                                                              Monday, 13 June 2022

     The number of ordinary shares in issue at declaration date is 74 567 680 and the income tax
     number of Kaap Agri is 9312717177.

     Share certificates may not be dematerialised or rematerialised between Wednesday, 8 June 2022
     and Friday, 10 June 2022, 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/2022/JSE/ISSE/KALE/KALMar22.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website at
     https://www.kaapagri.co.za/s3/attachments/cl2ablhry00l8kngw87xe0dtj-interim-results-31-
     march-2022.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
10 May 2022

Sponsor

PSG Capital