South African fresh produce leader Capespan has reported strong numbers for the first half of 2014 (H1), with growth in revenue, operating profit and headlines earnings.
The company, which is 72 per cent controlled by agri-investor Zeder, saw revenue climb 10.3 per cent during the six-month period ended 30 June 2014, rising to R3.7bn (€264m) from R3.35bn last year.
'The Group achieved strong trading results for the half-year ended 30 June 2014 despite challenging production and trading environments in many geographies,' Capespan outlined in a statement. 'Southern Hemisphere fruit volumes have declined from our major production sources as a result of adverse climatic conditions impacting mainly the deciduous fruit volumes.
'Recurring profit before taxation has increased steeply, mainly due to a strong recovery by farming operations, not only from the
low levels during the prior year, but also exceeding the levels of performance in the past,' the group added.
Revenue growth of 68 per cent growth in Capespan's farming division, and 9.9 per cent in its fruit division, helped push operating profit up 186 per cent year-on-year to R99.3m, and headline earnings up 50.2 per cent to just over R46m.
'The improvement is attributable to the Farming Division as a result of increased grape yields, prices and the further depreciation of the rand, all of which increased the total realisation at farm level, as well as improved associate income from Golden Wing Mau,' Capespan added.
