THE BUSINESS
Photo taken during Senwes’ Wellness Day held
at Senwes Head Office in 2018.
BUSINESS PARTNERS
To be a business partner of choice through driving
effective strategy execution and optimally levera
ging critical mass, value synergies, operational effi
ciencies and other benefits to the long-term advan
tage of the group as a whole.
Issues during the year
Lack of strategic alignment and ineffective
strategy execution.
Operational inefficiencies and lack of opera-
tional execution.
Sub-par financial performance of certain joint
venture companies.
Insufficient unlocking of value through leve
raging critical mass and value synergies.
EMPLOYEES
To be an employer of choice that pays market re
lated salaries whilst providing employees with the
opportunity to realise their desired career paths.
Issues during the year
Challenging macro economic environment.
Wage agreement disputes.
Employment equity compliance.
SUPPLIERS
To be the preferred supplier of products and ser
vices to clients and customers in the agricultural
sector.
Issues during the year
Clients’ cash flow was under pressure.
Company’s response to these issues
Senwes hosted its first employee wellness
day.
Senwes paid short-term incentive bonuses to
staff to the value of R48 million.
Formalised wage agreement disputes of both
Senwes and Hinterland were referred to the
CCMA, where both cases were resolved with-
out escalating to strike-level.
Two Department of Labour non-compliance
cases were successfully defended and com-
pliance certificates were issued.
A five-year employment equity plan was de-
veloped, with full stakeholder engagement
and approval, which was submitted and
acknowledged by the Department of Labour.
Salaries
R’m
450
400
Company’s response to these issues
Company’s response to these issues
Hinterland offered extended payments of up
to two months on seed and up to 150 days
on crop protection chemicals, which ensured
that suppliers were paid on time and clients
enjoyed the benefit of interest-free extended
payments with the same discount as initially
negotiated.
Regular critical evaluation (financially, ope
rationally and strategically) of each joint ven-
ture, subsidiary or associate to determine the
action steps that need to be taken in order to
ensure financial sustainability, operational ef-
ficiency and strategic fit, in such a manner as
to ensure that the intended value and critical
mass can be obtained to ensure benefits and
long-term sustainability for the Senwes group
as a whole.
Cost of Investments
R’m
500
450
400
350
300
250
200
150
100
50
-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Subsidiaries
JV’s and Associate
Paid to suppliers of goods and services
R’m
1 800
1 600
1 400
1 200
1 000
800
600
400
200
-
2015
2016
2017
2018
2019
350
300
250
200
150
30
Photo taken at the exhibition of JD Implemente, joint venture of Senwes,
at the first Nampo Cape held during September 2018 in Bredasdorp.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SENWES INTEGRATED REPORT 2019
SENWES INTEGRATED REPORT 2019
31