Grindrod sees good results due to record mineral volumes, and people, says FD Fathima Ally
Fathima explains that Grindrod stuck with its operations strategy, despite impeding external factors.
According to FD Fathima Ally, Grindrod has reported “exceptional results” for the year ended 31 December 2021, underpinned by record mineral volumes handled at its port and terminals operations, as well as strong performance from its coastal shipping and container depot business.
She explained that this was because Grindrod stuck with and implemented its strategy around quality lending and maintaining healthy capital and liquidity ratios, despite impeding external factors like Covid-19 and the civil unrest in July.
The group reported a nine percent increase in revenue for the year to R5.2 billion, with a trading profit of R1.8 billion.
The group’s port and terminals operations reported an earnings growth of 70 percent, with its Maputo port volumes growing 21 percent and its Matola drybulk terminal handling a record 8.3 million tonnes (50 percent up).
“It would be easy to say that the high volumes were driven by the commodity demand, which at high level is valid, but it is the tenacity of the employees of Grindrod to create customer-driven solutions that improved throughout and reduced bottlenecks to ensure that, with the increased demand, the customers’ products reached their intended destinations,” says Fathima. This, she adds, was the main reason for the increase in revenue.
Grindrod also recently sold its shipping operations for R338.1 million, and Fathima says the group continues to look at how it can work more efficiently. “An example of a growth area for Grindrod currently is to grow the Agri footprint under our East Africa expansion.”