CFO Eddie Fivaz says increase in assets and general trade contribute to improved results
TWK saw a 41 percent year-on-year profit increase due to its diversified income streams and assets.
TWK has stated that the diversity of its income streams and assets has contributed to the company’s resilience during Covid-19. The agriculture company reported a 41 percent year-on-year increase in profit after tax to R90 million for the half-year ended 28 February.
CFO Eddie Fivaz said that the company’s total assets increased slightly in the period under review, owing to an asset for share transaction, capital expenditure and increase in trade and other receivables.
TWK’s results were further positively impacted by an increase in general trade sales volumes and margin improvement. “The purposeful effort to reduce working capital, the effective financing model as well as the decline in interest rates, resulted in a decrease of R26.22 million in finance costs. This, together with cost-saving initiatives across the majority of operations, resulted in an increase of 45.1 percent in profit after finance costs to R127.38 million,” Eddie added.
The company also said that a large part of its success was due to the improved results of its Sawmill, BedRock Mining Timber, Sunshine Seedlings, General Trade and Fertiliser divisions.
TWK reported a 44 percent year-on-year increase in earnings per share to 242.67c. It also generated 12 percent more cash at R194 million, while its net asset value per share increased to R46.52, compared with R41.28 reported in the prior comparable six months.