KAL Group (KAL) H1 2025 earnings summary

Executive summary

• EBITDA for H1 2025 was ZAR 557 million, down 2.1% year-on-year, with strong market share gains, margin improvement, and cost control.

• Interim dividend increased by 3.7% to ZAR 0.56 per share, reflecting confidence in cash flow and future performance.

• Balance sheet remains healthy with reduced debt and improved gearing; CAPEX contained at ZAR 76 million.

• Strategic focus on operational efficiency, market share growth, and selective investments across Agrimark, PEG, and new business segments.

• Gross profit rose 0.9% to ZAR 1.66 billion despite revenue pressure from lower fuel prices and reduced grain handling income.

Financial highlights

• Revenue for H1 2025 was ZAR 10.82 billion, down from ZAR 12.06 billion in H1 2024; gross profit grew 0.9% to ZAR 1.66 billion.

• Recurring headline earnings per share decreased 3.7% to ZAR 3.9365; earnings per share down 3.6% to 394.29 cents.

• Debt to equity improved to 48.4% from 56.5% year-on-year; interest-bearing debt down ZAR 244 million.

• OPEX growth contained to 1.9%; CAPEX spend at ZAR 76 million.

• Net asset value per share increased to ZAR 48.11 from ZAR 44.66 year-on-year.

Outlook and guidance

• Management expects significantly improved H2, driven by new PEG site onboardings, positive Easter impact, and continued Agrimark market share gains.

• Bullish agri sector outlook, with normal wheat plantings, high agricultural business confidence, and healthy dam water levels.

• Tariff risks estimated at 2-3% of FY25 EBITDA, with limited exposure.

• Dividend payments expected to remain strong, with a focus on improving payout ratio.

• Moderate growth and margin pressure anticipated in general retail; agri infrastructure and credit sales expected to grow.