Grindrod Limited

For the first half, Grindrod reported EBITDA of ZAR 884 million, up 52%, and headline earnings of ZAR 593 million, flat versus the prior period. Group earnings were ZAR 598 million. Revenue increased 19% and trading profit rose 52%, though management said the H1 2025 base was normalized for non-trading items and a full 6-month Matola comparison. Cash generated from operations rose to ZAR 561 million from ZAR 439 million, net cash was ZAR 535 million, and cash on hand was ZAR 3.6 billion. The board declared an interim ordinary dividend of ZAR 0.243 per share, up 6%, with 3.5x cover. Looking ahead, management said Matola expansion remains on track and within its $40 million budget, targeting 12 million tonnes per annum by Q1 2027. The Maputo dredging program is still targeted for completion in Q4 2027, and planned rail operations are intended to start in April 2027 after a test train before year-end. Management also said 96% of long-term borrowings of ZAR 1.2 billion will be refinanced by end-August 2026, with estimated savings of ZAR 40 million to ZAR 50 million over 5 to 7 years.

Kwazi Mabaso framed the half as proof that Grindrod’s strategy is working, emphasizing resilient infrastructure, strong execution, and a growth pipeline that is increasingly visible. He stressed that the company is not pursuing growth for its own sake, but only where it can protect returns and strengthen the integrated logistics corridor. His tone was confident and disciplined, while acknowledging safety, market volatility, and the need to keep improving logistics.

Fathima Ally focused on the quality of earnings, balance-sheet strength, and the effects of the Matola consolidation. She said revenue was up 19% and trading profit up 52%, with EBITDA margins at 31%, while cash generated from operations rose 28% to ZAR 561 million and net cash ended at ZAR 535 million after ZAR 591 million of interest, tax, and dividend outflows and net capex of ZAR 183 million. She also highlighted ZAR 165 million of additions to property, plant and equipment and right-of-use assets, gross debt down 4%, and the CTA refinancing that will cover 96% of ZAR 1.2 billion in long-term borrowings and is expected to save ZAR 40 million to ZAR 50 million.

Analysts asked whether Maputo car terminal performance is sustainable, how second-half Matola volumes are developing, what the restart of SA ferrochrome smelters means for export volumes, and whether the refinancing will bring in new lenders. Management said the car terminal benefited from the Strait of Hormuz disruption and may not repeat at the same level, but they are trying to create more value. On Matola, they said H2 typically carries about 60% of annual volumes and that recovery is continuing, while ferrochrome restarts should support chrome ore demand and shift volumes toward more conventional dry bulk terminals. On refinancing, Fathima said the aim was to bring existing funders under the CTA; all top 5 South African bankers are already in.