KAL Group profit dips slightly, but management is optimistic about the second half

KAL Group, the JSE-listed agri, fuel and convenience speciality retailer reported a steady performance in the six months to March 31, with earnings only marginally lower, and it has predicted a stronger performance in the second half.

- EDWARD WEST

It generated R557.1 million in earnings before interest, tax, depreciation, and amortisation (EBITDA), a decline of 2.1% over the first half of last year, while R440.6m in pre-tax profit (PBT) was lower by 3.9%. However, the interim dividend was raised to 56 cents a share from 54 cents in 2024 reflecting business confidence and a commitment to shareholder returns.

“KAL Group has grown tenfold over the past 14 years. To put it in perspective fourteen years ago, we made just 10% of what we've reported this half. That kind of growth, even in a flat period, shows our business remains solid,” Sean Walsh, CEO of KAL Group, said Thursday.

Debt was reduced by R243.5m in the first half, and the debt-to-equity ratio declined to 48.4% from 56.5%. The balance sheet remained robust, with healthy cash flow, strong working capital, and debt levels at their lowest in a decade.