Grindrod projects earnings surge of over 100% for 2025 boosted by strategic deals

Grindrod has predicted a more than 100% increase in earnings from its Southern Africa transport and logistics sector operations due to significant one-off transactions done as part of strategy.

The share price shot up 6.58% to R18.80 in early trade on the JSE on Wednesday morning, a price that had appreciated well be over 43% over a period of 12 months.

The company anticipates earnings will range between R2.04 billion and R2,1bn for the year to December 31, compared to the R314 million reported in the previous year, the group said in a trading update Wednesday. 

Among the key drivers of the earnings boost was the release of foreign currency translation reserves associated with the recent acquisition of the remaining 35% interest in the Matola terminal joint venture, alongside the exit of the marine fuel trading joint venture.

These transactions had not only streamlined operations, but also contributed substantially to profitability.

Grindrod's earnings per share (EPS) was also projected to soar, with estimates ranging from 306.3 cents to 313.8 cents, compared to 47.1 cents in the comparative period.

Similar trends were anticipated for headline earnings, predicted to be between R1.18bn and R1.23bn, with headline earnings per share (HEPS) forecasted at 176.1 cents to 183.6 cents, contrasting sharply with 46.7 cents reported last year.

Even core operations reflected a strong performance, with headline earnings from core operations expected to be in the range of R1.15bn to R1.2bn compared to R1bn previously recorded.

This would translate to core HEPS of 172.8 cents to 180.3 cents, a healthy increase of between 15% and 20% compared to the past year.

The positive outcomes stemmed from exceptional performances at the Matola Terminal and Maputo Port, achieving record throughput volumes of 9.9 million tons per annum (mtpa) and 15.2 mtpa, respectively.

The annual results are expected to be released on March 6, 2026.

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