Zeder Investments (ZED) H1 2025 earnings summary

Executive summary

• Multiple Pome asset sales agreements and major disposals, including farms and a packhouse, signed and progressing, totaling up to ZAR 730 million, with most transactions expected to conclude by year-end and proceeds funding special dividends.

• Special dividends totaling up to ZAR 939 million paid during the year, with further distributions anticipated as asset disposals complete.

• Strategic focus on maximizing shareholder wealth through asset disposals, returning capital, and ongoing review of Zaad for potential sale or restructuring.

• Transitioned to the JSE General Segment in October 2024 for increased flexibility.

Financial highlights

• SOTP value per share declined to R1.77 as of 28 Feb 2025, mainly due to special dividends and lower Zaad valuations.

• Zaad recurring headline earnings down 26.9% to R160m year-over-year, mainly due to weaker performance from Farm-Ag, May Seed, and associates.

• Net fair value loss on investments: R186m for Zaad and R466m for Pome Investments.

• Net asset value per share declined to 177.1 cents from 248.3 cents year-over-year.

• No debt on balance sheet; strong cash position expected to improve further post-disposals.

Outlook and guidance

• All Pome asset sales expected to close in 2024, with proceeds to be distributed as special dividends, subject to board approval.

• Macro environment remains constrained by volatile weather, global market risks, and geopolitical conflicts, but balance sheet remains stable.

• Agribusiness confidence index improved to 70 points in Q1 2025, highest since Q4 2021.

• Continued uncertainty and volatility expected in the short to medium term.