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<p>Property investment company Equites recorded a 20 per cent drop in headline earnings in the last financial year but they insist that in that period, the strength of their tenant base, their sound investment philosophy shone through. Equites CEO, Andrea Taverna- Turisan joins CNBC Africa to unpack the numbers.</p>


Equites sees 20% decline in full-year headline earnings


<p>JOHANNESBURG (Reuters) &#8211; South African lender Capitec said on Tuesday it would not pay a dividend for its full year, although profits rose by 19%, in line with guidance from the country’s central bank to <a href="https://www.cnbcafrica.com/southern-africa/2020/04/07/sarb-guides-banks-to-put-dividends-bonuses-on-hold/">scrap payouts amid the coronavirus outbreak</a>.</p>



<p>The <a href="https://www.cnbcafrica.com/news/2020/04/14/south-african-reserve-bank-cuts-repo-rate-by-another-100-basis-points/">South African Reserve Bank (SARB)</a> asked lenders to skip dividends for 2020 earlier in April to preserve capital for lending. Capitec was one of only a few lenders to not have already declared a dividend at this time.</p>



<p>“After extensive deliberation, the board decided to support the guidance of the Reserve Bank and decided against the declaration of the final ordinary dividend,” Capitec, which normally pays out 40% of profits to shareholders, said in its results statement.</p>



<p>The banks’ main rivals &#8211; South Africa’s big four lenders including FirstRand and Absa &#8211; all reported their results and declared dividends in March. The SARB has said dividends already announced can be paid.</p>



<p>Capitec reported a full-year profit rise of 19%, at the bottom end of a forecast range of 18% to 21% it outlined in a trading statement last month. [L8N2BC6T4]</p>



<p>Its headline earnings per share &#8211; the main profit measure in South Africa &#8211; stood at 5,428 cents ($3.02), verses 4,557 cents a year earlier.</p>



<p>The lender grew to become South Africa’s sixth largest bank by assets via a strategy focused on unsecured lending to lower-income consumers, and is generally perceived to be more exposed to any economic downturn as a result. Unsecured lending relies solely on consumers’ promises to repay.</p>



<p>A fear of a spike in bad debts following the <a href="https://www.cnbcafrica.com/east-africa/2020/04/08/how-african-economies-can-survive-the-covid-19-crisis/">outbreak of the coronavirus and a prolonged lockdown</a> to stem its spread have pummelled bank shares, with Capitec in particular suffering.</p>



<p>Its credit impairment charge rose by 14% over the year to February, in line with other banks which also saw impairments spike as the South African economy deteriorated.</p>



<p>($1 = 17.9976 rand)</p>



<p>(Reporting by Emma Rumney, Editing by Raju Gopalakrishnan)</p>



<p>This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKCN21W0P2-OZABS">https://af.reuters.com/article/investingNews/idAFKCN21W0P2-OZABS</a> and is republished with its permission.</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


COVID-19: South Africa eases lockdown to revive battered economy

South Africa’s Capitec says full-year profits rise by 19%, skips dividend


<p>JOHANNESBURG (Reuters) &#8211; South African feed and poultry company Quantum Foods said on Thursday half-year earnings could fall as much as 38%, partly due to a margin squeeze in its egg business because of lower selling prices. </p>



<p>The group said headline earnings per share for the six-months ended March 31 were expected to fall between 28.1 cents and 34.9 cents, down between 23% and 38% compared with 45.4 cents for the same period in the previous year.  </p>



<p>The owner of Nulaid eggs said the drop in egg selling prices was a result of an increase in supply in South Africa and higher feed production costs. The company expects the egg business, which contributed about 25% of group revenues in 2019, to report a loss when it publishes results on May 21. </p>



<p>Quantum said Covid-19 had, to date, not had any significant effect on its business. The company said the extent of the negative impact of Covid-19 on consumers and the economy was still uncertain but it would communicate any significant effect on its operations or financial performance. </p>



<p>Headline earnings, the main profit measure in South Africa, were also negatively impacted by a decline in earnings from operations elsewhere in Africa. In Zambia, a very poor 2019 maize harvest resulted in higher feed costs, and consequently lower margins from eggs and lower demand from livestock customers, the company said. </p>



<p>On the upside, Quantum had improved profitability from the feeds business, benefiting from increased volumes supplied to both external customers and the company’s layer farms that had higher numbers of layer hens in production. </p>



<p>Profit from the group’s farming business also improved, mostly due to higher volumes of live birds supplied by the Western Cape broiler farming operations, it said.  </p>



<p>“Productivity on the layer farms continues to improve which further contributed to earnings. However, weaker demand from the layer livestock market negatively impacted margins in this business,” Quantum added. </p>



<p>(Reporting by Nqobile Dludla. Editing by Jane Merriman)</p>



<p>This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21K18C-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21K18C-OZABS</a> and is republished with its permission.</p>


Administrators propose sales plan for SA retailer Edcon, see potential job cuts

South Africa’s Quantum Foods warns of 38% drop in first-half profit

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<p>In its half year results PSG Group, reported an income of R1.2 billion in cash from its investment opportunities.</p>


SA’s PSG Group maintains strong position in the market

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<p>Fleet management, vehicle tracking company, Cartrack reported a 20 per cent increase in headline earnings to R138 million. Joining CNBC Africa for more is John Edmeston, Deputy Global CEO of Cartrack.</p>


Cartrack sees an increase in headline earnings

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<p>In its interim results, PSG Konsult showed growth with recurring headline earnings per share increasing by 10 per cent and gave the company a return on equity of 21 per cent. The company has also announced that it has concluded an agreement to acquire the commercial and industrial insurance brokerage business of Absa Insurance and Financial Advisers. Joining CNBC Africa for more is PSG Konsult CEO, Francois Gouws.</p>


PSG eyes growth opportunities

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<p>JSE listed investment holding company, Zeder reported a saw a decline in headline earnings by 69.9 per cent to 4.3 cents per share. Joining CNBC Africa for more is Zeder CEO, Norman Celliers.</p>


headline earnings

Equites sees 20% decline in full-year headline earnings

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

South Africa’s Quantum Foods warns of 38% drop in first-half profit

SA’s PSG Group maintains strong position in the market

Cartrack sees an increase in headline earnings

PSG eyes growth opportunities

Zeder sees a decline in headline earnings

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headline earnings

Equites sees 20% decline in full-year headline earnings

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

South Africa’s Quantum Foods warns of 38% drop in first-half profit

SA’s PSG Group maintains strong position in the market

Cartrack sees an increase in headline earnings

PSG eyes growth opportunities

Zeder sees a decline in headline earnings

News Tips

Advertise With Us

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