KAAP AGRI IS FLAGGING THAT HIGHER INTERIM EARNINGS ARE EXPECTED THIS YEAR

KAAP AGRI, the agricultural goods and fuel retailer, flagged that for the six-month period ended March 2022 earnings per share would be between 365 cents and 368c, representing an increase of between 21.5 percent and 22.5 percent from the prior comparative period. By 2.32pm the share price on Tuesday on the JSE had soared 8.41 percent to R46.90 on the update, with the share down 13.48 percent in the year to date, but up more than 33 percent in three years. It closed at R45.45. Kaap Agri, with a market cap of R3 billion, said headline earnings per share would be between 340c and 343c, an increase of between 13.3 percent to 14.3 percent. This as recurring headline earnings per share were expected to be between 350c and 353c, a hike of between 14.6 percent and 15.6 percent. Kaap Agri said it considered recurring headline earnings to be a key benchmark to measure performance. “The adjustments relate to the exclusion of non-recurring expenses, which consist predominantly of costs associated with acquisitions of new businesses, and the revaluation of put options,” it said. In January Kaap Agri inked a R1.1bn deal to buy independent fuel retailer PEG Retail Holdings, which would add 41 service stations to Kaap Agri’s network, from 43 currently. |