Trading update
Grindrod Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE000071106
(“Grindrod” or “the Company” or “the Group”)
TRADING UPDATE
This trading update is also available on the Company’s website on the Investor Presentations landing page:
https://www.grindrod.com/investor-proposition/shareholder-documents#presentations.
TRADING UPDATE
OVERVIEW
Grindrod continued to deliver a strong performance for the nine-month period ended 30 September 2022 (“the
period”).
Volume growth due to strong mining minerals markets and strategic focus on customer solutions are the
drivers of performance in both the Port and Terminals, and Logistics business segments.
Grindrod Bank reported healthy growth in its earnings compared to the nine-month period ended
30 September 2021 (“the prior period”) underpinned by the higher interest rate environment.
OPERATIONAL REVIEW
Port and Terminals
Maputo Port volumes were up 23% against the prior period capitalising on the additional slab and berthing
capacity.
Grindrod’s drybulk terminals volumes were up 47% on the prior period. Grindrod benefited from further profit
participation on 293 716 tonnes of coal cargo handled, driven by strong customer demand.
Repairs to the damaged berth infrastructure at the Matola terminal are now complete. Feasibility studies are
currently underway for the expansion of the terminal from 7.3 million tonnes per annum to 12.0 million tonnes
per annum.
Logistics
Grindrod’s coastal shipping and container depot business performance benefitted from healthy charter rates
secured on the leasing and subleasing of vessels.
The locomotives deployment rate in Grindrod’s Rail business improved to 63% compared to the prior
period’s 32%.
The Northern Mozambique graphite operations embedded its alternative break bulk solution out of the port of
Pemba handling 60 684 tonnes for the period.
The clearing and forwarding business delivered solid results for the period supported by favourable freight
rates.
CORPORATE TRANSACTIONS
The disposal of Grindrod Bank to African Bank is now complete with all conditions precedent fulfilled on the
7th of October 2022. The disposal will be effective on the 1st of November 2022.
REMGRO LIMITED (“REMGRO”) UNBUNDLING
Following Remgro’s announcement to unbundle its Grindrod interest to its shareholders, Grindrod would like
to thank Remgro for their continued support over the years and reaffirm the Group’s commitment to execute
the strategy to unlock shareholder value.
STRATEGY
Grindrod continues to drive its strategy of delivering efficient and cost-effective logistics solutions to its existing
and potential new customers. In support of these solutions Grindrod will invest in the required infrastructure.
The information in this trading update has not been reviewed or reported on by Grindrod’s auditors.
By order of the Board
13 October 2022
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 13-10-2022 07:05:00
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