Grindrod Revenue Drops Slightly In 2024

JSE-listed freight logistics company Grindrod Limited has announced its annual financial results, showing a slight decline in core revenue in the face of operational challenges.

The company reported core revenue of R7.4 billion for the year ended December 31, 2024, slightly down from R7.5bn in 2023, with core headline earnings of R1bn, a decrease from R1.4bn in the previous year.

Core Ebitda dropped to R2bn from R2.5bn in 2023, while cash generated from operations declined to R0.8bn compared to R1.2bn last year.

Grindrods net debt was R1.5bn, resulting in a net debt-to-equity ratio of 16.

The company declared a final ordinary dividend of 17 cents per share. This brought the total dividend for 2024 to 40 cents per share, with R267.2 million in total cash distributions to shareholders.

Operational challenges for the period included lower commodity prices and disruptions due to flooding in the first half of the year.

The company still managed to achieve a record 14.3m tonnes in chrome exports through Maputo port, marking a 14 increase compared to 2023. However, its dry-bulk terminal handling volumes declined by 5 to 16.7 million tonnes.

During the year under review, Transnet selected Grindrod to build and operate the first full-scale container terminal in Richards Bay, which is expected to require an investment of at least R500m over its 25-year operation. It also completed the R1.4bn acquisition of the remaining 35 shareholding in the Matola terminal at Maputo port.

The company also plans to invest up to R8bn in infrastructure-led logistics projects across key corridors in southern Africa.

Grindrod CEO Xolani Mbambo said the company was committed to expanding its logistics offerings to diverse markets, including liquid bulk, agricultural cargo, and various minerals.

We have identified a growth pipeline, including several logistics infrastructure-led investment opportunities, potentially worth R8bn, said Mbambo.

Grindrods rail division, which has been refurbishing locomotives repatriated from Sierra Leone, is preparing to participate in South Africas rail open access initiative. The company operates a fleet of 44 locomotives and 88 wagons and is exploring the acquisition of modern rolling stock to increase its reach in the local rail network.