BUSINESS REVIEW
Strategic review
Senwes is still following its roadmap to 2020 and is in the
process of reorganising the portfolio. The African businesses
were restructured during its period under review and cross-
border transactions will be facilitated from Senwes in future.
The consolidation between Senwes’ holding company,
Senwesbel, and NWK Holdings was not approved by the
relevant shareholder corps and Senwes will continue with
consolidation and operational co-operation discussions with
all relevant parties.
We are, however, satisfied with the partnerships in Hinterland,
Certisure, Grasland, JD Implements, Senwes Asset Finance,
Grainovations, ESC and Tradevantage.
Prodist is not rendering acceptable results as yet, but has
already gained market share. Improved strategic positioning
and financial results are expected by the next season.
The market is still highly fragmented and integrated to a
limited extent and participants are increasingly experiencing
challenges to remain relevant against international
conglomerates.
Consolidation, reorganisation and
specialisation remain our counter-measures against these
challenges. The establishment of a co-operation vehicle by
which to compete on a national basis will bring essential critical
mass and will increase the ability to ensure sustainability. New
markets which will decrease risk, will also be investigated
further.
Financial and operational review
An increase of 41% in normalised headline earnings for the
first six months of the 2015 financial year once again proved
the unpredictability, volatility and particularly the recovery ability
of the agriculture sector. After two successive drought years it
became evident that the expected road to recovery would take
two to three seasons. Grain stock levels were at a record low,
the spending ability of clients was low due to the drought and
business confidence was at an all-time low, particularly due to
the land reform debate which struggled to get underway initially.
Senwes Interim Results October 2014
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