This article first appeared on GuruFocus .
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Revenue:Core revenue up 1%.
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EBITDA:Increased by 13% to ZAR2.3 billion.
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Headline Earnings:Grew by 17% to ZAR1.2 billion.
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Cash from Operations:Generated ZAR2 billion with an EBITDA cash conversion rate of 1.3x.
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Cash Reserves:Held ZAR3.9 billion at year-end.
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Ordinary Dividend:Total of ZAR0.482 per share, a 21% increase.
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Special Dividend:ZAR0.43 per share, returning 49% of non-core proceeds to shareholders.
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Total Shareholder Return:ZAR862 million for the full year.
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Port and Terminals Volume:Maputo port achieved 15.2 million tonnes; Matola terminal reached 9.9 million tonnes.
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Net Profit:Attributable to ordinary shareholders at ZAR2.1 billion, up 559% from the prior year.
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EBITDA Margin:Improved to 30% for the financial year 2025.
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Net Debt:Closed the year in a net cash position of ZAR699 million.
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Capital Expenditure:ZAR1.5 billion, with 81% being expansionary.
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Effective Tax Rate:31% for the group.
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Release Date: March 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grindrod Ltd ( JSE:GND ) achieved a record lost time injury frequency rate of 0.16, demonstrating a strong commitment to safety.
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The company delivered record volumes in Maputo and Matola terminals, with growth rates of 6% and 22%, respectively.
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EBITDA grew by 13% to ZAR2.3 billion, translating into headline earnings growth of 17% to ZAR1.2 billion.
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Grindrod Ltd ( JSE:GND ) declared an ordinary dividend of ZAR0.252 per share, marking a 21% increase, and a special dividend of ZAR0.43 per share.
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The company closed the year in a net cash position of ZAR699 million, with a largely ungeared balance sheet and debt capacity approximating ZAR4.5 billion.
Negative Points
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The Logistics segment faced headwinds, with revenue and EBITDA down 10% and 18%, respectively.
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Commodity prices saw a downward shift, putting pressure on the transport brokering business.
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The graphite operations slowed down, although recent market developments point to a recovery.
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South Africa's economic growth at 1.3% still falls short of the required rate to mitigate structural economic challenges.
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The company experienced a significant drop in Mozambique's economic performance, with growth at 1.1%.
Q & A Highlights
Q: What hedging strategies are in place to manage US dollar or foreign currency exposure? A: Fathima Ally, CFO, explained that Grindrod's significant businesses in Mozambique operate in US dollars, minimizing foreign currency exposure. Costs in local currencies are quickly closed out within the working capital cycle. Capital expansion is funded in the functional currencies of the entity to avoid volatility. The company is naturally hedged, and forward covers are used when needed.
Q: Is there any impact expected from the current Middle East conflict? A: CEO Kwazi Mabaso stated that geopolitical risks are unpredictable, but Grindrod focuses on controllable factors. The company monitors commodity prices, which directly impact their operations. Recent increases in coal prices have led to higher volumes at their Navitrade facility.
Q: What is the outlook on chrome volumes given government support for the domestic ferrochrome sector? A: CEO Kwazi Mabaso noted that discussions to process and ship only ferrochrome could increase demand, as ferrochrome also moves through their port. While chrome ore volumes might reduce, demand remains strong, with Zimbabwe's market share potentially increasing.
Q: What is the medium-term margin outlook in each segment, and what is the net debt outlook given the strong balance sheet and growth ambitions? A: CFO Fathima Ally stated that Port and Terminals margins are expected to remain stable at 44%, with Logistics margins at a minimum of 25%. The net debt position is expected to decrease due to dividend declarations, but the company is in a growth phase. Grindrod aims to maintain a net debt to EBITDA ratio of 2x, potentially extending to 2.5x for compelling opportunities.
Q: What is the short and medium-term outlook for the Logistics segment, and how can resources be optimized? A: CEO Kwazi Mabaso explained that the Logistics segment includes rail, graphite, container, road transport, and ship agency businesses. Improvements are expected in graphite operations and rail deployment. The company is focusing on increasing rail deployment rates and optimizing container operations.
Q: What is the expected timeline for the PSP opportunity in the Richards Bay dry bulk terminals? A: CEO Kwazi Mabaso stated that the RFQ process will close in August, followed by the RFP process. Grindrod is prepared for this opportunity and is ready to participate.
Q: Are you contemplating reducing interest-bearing debt with the cash that you have? A: CFO Fathima Ally mentioned that Grindrod is restructuring its debt into a common terms arrangement with main bankers, aiming to reduce interest burden by up to ZAR40 million over the debt period.
Q: To what extent can the dredging program and Matola upgrade disrupt volumes in the short term? A: CEO Kwazi Mabaso assured that a modular approach is being adopted to minimize disruption during the execution of the dredging program and Matola upgrade.
Q: What is the guidance for CapEx in 2026, and how much of it is fixed? A: CFO Fathima Ally indicated that authorized CapEx is approximately ZAR1.2 billion, mainly for Port and Terminals. A significant portion is contracted, but cash flow timing can be controlled based on project progress.
Q: Can you provide information on the top destinations for coal and chrome exports? A: CEO Kwazi Mabaso stated that magnetite is primarily destined for China, while coal is exported to South Asia and parts of Europe. Chrome follows similar routes, mainly to China and South Asia.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
