South Africa-based farming, fresh produce and logistics group Capespan has reported higher half-year profits, helped in part by improved sales from its fruit division.
However, Capespan warned growth could slow in the second half of the year.
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Capespan booked a 42.9% jump in net profit to ZAR43m. Operating profit, which stripped out non-recurring items including profit on disposals and impairment, almost trebled from ZAR34.7m to ZAR99.3m.
Revenue increased 10.3% to ZAR3.7bn. Capespan said sales from its fruit division were up 9.9%. The improved fruit revenue, plus a jump in farming revenues helped by increased grape yields and the depreciation of the rand, offset lower sales from logistics.
Looking ahead, Capespan said its domestic business was “experiencing bottlenecks and other challenges with documentation on citrus exports”.
It also pointed to a “fragile” economic and geopolitical environment in the markets in which it does business.
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By GlobalDataThe company said: “Despite these factors management believes that the current operational success in the other areas of the group will continue for the remainder of the year, however the improvement of the second half of the year over the previous year is likely to be less than the growth of the first half.”
