Zeder, an agribusiness investment entity, reported a 28.9% decrease in profit for the year ending 29 February, attributed to a reversal of impairment on loans and advances from the previous year. The group highlighted the constrained macro environment impacting its operations and portfolio companies in South Africa. Challenges such as the El Niño weather phenomenon, logistical issues at ports and railways, and deteriorating road and municipal infrastructure were noted as detrimental to business confidence within the South African agribusiness sector.
Despite the profit downturn, Zeder's headline earnings per share saw an improvement, registering at 0.8 cents from a previous loss of 12.1 cents. A gross special dividend of 10 cents per share was declared from income reserves, continuing the absence of an ordinary dividend for the second consecutive year. Following its unbundling from PSG Group and subsequent listing on the JSE, Zeder restructured into two main segments, Zaad and Capespan, with a focus on South African operations.
January saw Zeder's subsidiary, Zeder Financial Services, and minority shareholders of Capespan divest all shares in Capespan to 3 Sisters, excluding Pome Investments. This sale resulted in a disposal consideration of R511 million in cash for Zeder. Subsequent to this transaction, Zeder shareholders were allocated a gross special dividend of 20 cents per share. Post-sale, Zeder has received interest in its remaining investments, with PSG Capital and Rabobank appointed as co-advisors for potential divestitures, particularly regarding Zaad.
Source: moneyweb.co.za
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