South African fresh produce group Capespan has reported on its best yearly performance ever, with operating profit increasing to R168m (€13.86m) in 2008 from R98.7m (€8.14m), an increase of 70.2 per cent.
Revenue for the yearly period jumped 13.1 per cent from R2.14bn (€176.5m) to R2.42bn (€199.6m), driven by a strong performance by the fruit division from higher market prices and the effects of the rand's devaluation against trading currencies.
'The results can be ascribed to a significant rise in the operating profits of the fruit and logistics divisions,' said group managing director Neil Oosthuizen. 'In the fruit division the improvement was primarily as a result of South African exports and the first-time inclusion of operating income generated from farm management activities. The logistics division posted excellent profits in all subsidiaries, with the port terminals significantly increasing citrus steri volumes and containers handled.'
While logistics operations did achieve growth in terminals, this was offset by a fall in shipping revenue, the group said.
Earnings per share for the year jumped 64 per cent to R0.33 from R0.20 in 2007, with the group to pay an interim dividend of R0.8 per share to its shareholders, an increase of 21 per cent.
'Final impacts of the global financial crisis aren't all known yet,' Mr Oosthuizen said, warning that 2009 profits could come under pressure. 'The liquidity and credit crisis will influence our markets and customers in different ways and the company will have to remain flexible and adjust to changing demand patterns and pricing structures.'
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