On 6 March 2025, Grindrod Limited (Grindrod), a JSE-listed freight logistics company, announced its results for the financial year ended 31 December 2024.
Overall group financial performance:
- Core revenue: R7.4 billion (FY23 R7.5 billion)
- Core headline earnings: R1.0 billion (FY23 R1.4 billion)
- Core EBITDA: R2.0 billion (FY23 R2.5 billion)
- Cash generated from operations: R0.8 billion (FY23 R1.2 billion)
- Net debt is R1.5 billion with net debt to equity at 16%
- Final ordinary dividend: 17 cents per share
Operational highlights
- Record chrome exports of 14.3 million tonnes in Maputo Port, an increase of 14% on the prior year
- Dry-bulk terminals handled 16.7 million tonnes for the year, a decrease of 5% on the prior year
- Grindrod selected by Transnet to build and operate a container terminal in Richards Bay
- Acquired the remaining 35% shareholding in the Matola terminal
- Grindrod Rail is gearing to participate in South Africa’s rail open access
Strategy
- Expand integrated logistics solutions by leveraging the terminals and rail capabilities
- Invest in infrastructure-led logistics opportunities in key corridors to the potential value of R8 billion
Grindrod achieved core headline earnings of R1.0 billion (FY23 R1.4 billion), despite difficult trading circumstances. The impact of the intermittent Lebombo/Ressano Garcia border closures in the last quarter of 2024 was 4.4 million tonnes per annum in volume and circa R0.2 billion on headline earnings. Overall performance was also impacted by lower commodity prices (except for chrome) and the disruptive cyclonic flooding in the first half of the year.
A final dividend of 17.0 cents per share was declared, resulting in a total dividend of 40 cents per share declared for 2024 and a total cash distribution of R267.2 million to ordinary shareholders.
In the first half of 2024, Grindrod was selected by Transnet National Ports Authority to develop and operate the first full-scale container handling facility at the port of Richards Bay in KwaZulu-Natal. The investment amount is at least R500 million over the facility's 25-year operation.
The acquisition of the remaining 35% shareholding in the Matola terminal for R1 426.4 million is well advanced. The acquisition underscores Grindrod's alignment with the port of Maputo's expansion plans, enhancing its position as a critical logistics hub for Southern Africa's mining sector.
The Rail business is focused on refurbishing the 13 locomotives repatriated from Sierra Leone and various engagements ahead of the anticipated South African rail open access. The current fleet consists of 44 locomotives and 88 wagons. The Group is participating in the open access slots process across the rail network in South Africa. In phase two, Grindrod will seek to acquire a new modern rolling stock fleet to increase its reach in South Africa's rail network. The company is also enhancing its service offerings through active partnerships with rail authorities, ensuring sustainable cargo flows for the benefit of customers and stakeholders.
Grindrod is uniquely positioned to capitalise on the many opportunities in the logistics sector as South Africa advances its logistics network reform agenda.
Xolani Mbambo, CEO of Grindrod Limited commented: “Our customers' needs remain central to our logistics solutions. By expanding our integrated offerings and utilising our terminal facilities and rail capabilities, we aim to enter diverse markets, including liquid bulk, agricultural cargo, and various minerals. We have identified a growth pipeline that includes several logistics infrastructure-led investment opportunities, potentially worth R8 billion within our core portfolio.”.
The business will be discerning in the corridors it tenders for, evaluating the opportunities against a set of criteria including efficiencies, customer commitments, understanding of the corridor and the impact on the overall returns across the logistics value chain.
Our strategic infrastructure in key ports and inland facilities, experience in managing concessions, deep understanding of regional complexities, streamlined operations, high-performance culture, and agility to respond to market dynamics continue to make a positive difference in Africa's trade with the world.
By aggressively pursuing growth opportunities and collaborating with customers and key stakeholders, we will pave the way for a brighter future in logistics solutions across sub-Saharan Africa.
Detailed Results
