Half Year 2026 Grindrod Ltd Earnings Call Transcript
Key Points
- Record first-half owned handled volumes at the Port of Maputo, up 29% year-on-year to 8.4 million tonnes, with a 17% CAGR since 2022.
- Group EBITDA increased 52% to ZAR884 million, driven by the full consolidation of Matola TCM, which contributed ZAR371 million in incremental EBITDA.
- Strong cash generation from operations, up 28% to ZAR561 million, and a healthy balance sheet with net cash of ZAR535 million and ZAR3.6 billion in cash.
- Port and Terminals segment delivered exceptional EBITDA margins of 43%, with 85% of EBITDA earned in US dollars, and a solid return on equity of 20%.
- Growth pipeline is on track: Matola terminal expansion to 12 million tonnes per annum by Q1 2027, rail test train planned before year-end, and Maputo dredging to enable Capesize vessels by Q4 2027.
- Logistics segment performance was softer, with headline earnings down to ZAR32 million due to low rail deployment, eSwatini terminal wind-down, and subdued agency markets.
- Matola TCM volumes were 7% below the prior period due to weather disruption in the Phalaborwa area and elevated freight costs.
- Global commodity markets were volatile, with softer prices towards period end, impacting chrome, iron ore, and other commodities.
- The company reported a loss of a colleague, highlighting ongoing safety challenges despite improved lost time injury frequency rate.
- Trade receivables increased 17% due to higher balances from an integrated logistics customer and Mozambique bulk business, while cash decreased 7% due to special dividends paid.
(video playing)
Good morning, and a very warm welcome to Grindrod's 2026 interim financial results presentation. My name is Reshmee Soni from Investor Relations. We are delighted to welcome our analysts, shareholders, and members of our management team. A special welcome to our non-executive directors joining us online. In today's session, we'll cover the performance highlights, a financial and divisional overview, followed by an outlook. We will thereafter open the floor for your questions.
On your screen, you'll see a question box. Please use that to send us your questions this morning. With us this morning, Kwazi Mabaso, our Group CEO; and Fathima Ally, our Group CFO. Before we begin, please take note of the forward-looking statement on your screen.
I will allow you to peruse this at your own time. With that, I hand over to Kwazi.
Good morning, and thank you for joining us today. The first half showed the
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