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* Core businesses inclusive of joint ventures
Headline Cash generated Capital
Revenue * EBITDA * earnings * from operations expenditure *
31% 37% 53% 120%
H1 2022 actual
R288 million
GRINDROD LIMITED R3 134 million R1 066 million R529 million R741 million H2 2022 approved
Unaudited condensed consolidated interim results for the six months ended 30 June 2022 (2021 H1: R2 388 million) (2021 H1: R779 million) (2021 H1: R345 million) (2021 H1: R336 million) R287 million
COMMENTARY – CORE BUSINESSES CHANGE IN DIRECTORATE
Grindrod delivered good earnings growth in its core businesses for the six months ended 30 June 2022 (“period”) Mr Mike Hankinson retired as non-executive director and Chairman of the Board with effect from 03 June 2022. Grindrod
underpinned by strong mineral commodity markets and Grindrod Bank continued to perform well on the back of is immeasurably grateful to Mike for his steady stewardship and unwavering service during his 12-year tenure as director.
favourable net interest margins.
Ms Cheryl Carolus was appointed as Chair of the Board with effect from 03 June 2022. Cheryl is an experienced
Port and Terminals achieved earnings growth of 164% on the prior period due to an increase in volumes handled. director and Grindrod looks forward to her leadership as we continue to positively contribute to our communities
Maputo port volumes grew by 30% compared to the prior period. Grindrod’s drybulk terminals grew volumes and Africa’s trade with the world.
handled by 52% compared to the prior period despite various disruptive challenges. Grindrod’s coastal shipping and
The Board is pleased to announce the appointment of Xolani Mbambo to succeed Andrew Waller as Grindrod’s Chief
container depot businesses performed well under the challenging operational environment with earnings growth of Executive Officer with effect from 01 January 2023.
88% on the prior period. The Northern Mozambique graphite operations and the Clearing and Forwarding business
delivered solid results for the period. Grindrod’s rail business showed an improvement in locomotive deployment.
DECLARATION OF INTERIM DIVIDEND
Grindrod Bank reported healthy growth of 63% in its earnings from the prior period underpinned by the higher
interest rate environment. Grindrod Bank’s capital adequacy ratio is in line with compliance requirements and Ordinary dividend
its credit loss ratio at 48 bps is below the levels of 2021. Notice is hereby given that a gross interim dividend of 17.20 cents has been declared out of income reserves for the
six months ended 30 June 2022 (2021 H1: nil cents). The interim net ordinary dividend is 13.76 cents per share
for ordinary shareholders who are not exempt from dividends tax.
Unaudited Unaudited
30 June 2 02 2 30 June 2 0 21 Change At the date of this announcement, there were 698 031 586 issued ordinary shares.
Core businesses inclusive of joint ventures Rm Rm %
Preference dividend
Revenue 3 134 2 388 31 Notice is hereby given that a gross interim dividend of 337.0 cents (2021 H1: 305.0 cents) per cumulative, non-
Earnings before interest, taxation, redeemable, non-participating and non-convertible preference share has been declared out of income reserves for
1 066 779 37 the six months ended 30 June 2022. The interim net preference dividend is 269.6 cents per share for preference
depreciation and amortisation (EBITDA)
Profit attributable to ordinary shareholders 510 64 697 shareholders who are not exempt from dividends tax.
Headline earnings 529 345 53 As at the date of this announcement, there were 7 400 000 preference shares in issue.
Salient dates
The salient dates for the ordinary dividend and preference dividend (“dividends”) are as follows:
COMMENTARY – NON-CORE BUSINESSES
The Group continues to pursue the sale of non-core assets. Marine Fuels earnings were up from the prior period due Dividends’ declaration date Friday, 26 August 2022
to the strong oil market. Management continues to work with the Marine Fuels management and co-shareholder Last day to trade cum-dividends Tuesday, 20 September 2022
to exit this investment. The private equity portfolio exit is largely complete with only one significant asset remaining. Ordinary shares and preference shares start trading ex-dividends Wednesday, 21 September 2022
Management continues to explore various options to recover the significant loans advanced to the KwaZulu-Natal Record date Friday, 23 September 2022
north coast property owners. Payment date Monday, 26 September 2022
No dematerialisation or rematerialisation of ordinary shares and preference shares will be allowed for the period
RESULTS Wednesday, 21 September 2022 to Friday, 23 September 2022, both days inclusive.
The Group reported a profit of R385.2 million for the period against a loss of R424.0 million in the prior period.
Headline earnings increased significantly to R404.4 million compared to R4.5 million in the prior period. The local dividend tax rate is 20% and Grindrod’s tax reference number is 9435/490/71/0. Both the ordinary dividend
and preference dividend are declared in the currency of the Republic of South Africa.
Unaudited Unaudited
30 June 2 02 2 30 June 2 0 21 Change Directors’ statement Registered office
Total Group on a legal basis Rm Rm % This short-form announcement is the responsibility of the directors and is only and business address
a summary of the information of the full announcement and does not contain Grindrod Mews, 106 Margaret
Revenue 2 479 1 915 29 full or complete details. The full announcement is available for inspection at no Mncadi Avenue, Durban, 4001
EBITDA 615 325 89 charge, Monday to Friday, during office hours at the Company’s registered office,
Basic earnings / (loss) 385 (424) 191 the office of the sponsor and on the Company’s website at www.grindrod.com. Sponsor
Headline earnings 404 4 10 000 The full announcement is available on the JSE’s website on 26 August 2022 at Nedbank Corporate and
https://senspdf.jse.co.za/documents/2022/jse/isse/GNDE/ie2022.pdf. Copies of the full Investment Banking, a division
Basic earnings / (loss) per share (cents) 57.8 (63.1) 192
announcement may also be requested by email at investorrelations@grindrod.com of Nedbank Limited
Headline earnings per share (cents) 60.6 0.7 8 557 or telephonically from the Company’s registered office and the office of the
sponsor. Any investment decision by investors and / or shareholders should be Registration number:
made having considered the full announcement as a whole. 1966/009846/06, Incorporated
CORPORATE TRANSACTIONS in the Republic of South Africa
In early April 2022 the fuel carrier fleet in Botswana was disposed of at its net carrying value marking the completion By order of the board Share code: GND and
of Grindrod’s exit from the fuel and automotive carrier businesses. GNDP ISIN: ZAE000072328
VB Commaille and ZAE000071106
The joint venture transaction between Maersk Logistics and Services operations and certain of Grindrod’s container Group Company Secretary (“Grindrod” or “the Company”
depots and its coastal shipping business was approved by the Competition Commission on 24 May 2022. The remaining 26 August 2022 or “the Group”)
conditions precedent relating to implementation steps are being executed.
The disposal of Grindrod Bank to African Bank for R1.5 billion is ongoing, with all parties focused on fulfilling the
conditions precedent.
