NEWS
Now and into the future with Senwes
Francois Strydom , Chief Executive Officer of Senwes .
We have already heard it . The profit of Senwes increased by 86,2 %. We proudly reflect a profit after tax of R311 million and a return on opening equity of 15,7 %. But what does it mean for the future ? Senwes Scenario went to visit the CEO .
� By Aubrey Kruger Senwes Scenario Editor
THE RESULTS , THE COMPANY AND THE FUTURE
It was a good year because nature was on our side and we did the right things . People ask : Is the business doing well ? My answer is always no , we are not . We are never satisfied . We are very grateful , but never satisfied . You must have a desire to improve , which can never be fulfilled .
THE BASIS - A STRATEGY FOR THE FUTURE WHICH WILL WITHSTAND THE TEST OF TIME We believe in a well-considered strategy - ' an inch-wide and mile-deep ' approach . Most people think that money is only made at the end of the value chain , but this is not true . Our segment takes inputs to the primary producer and takes the product to the processing side as well . We try to be the best in this focused part of the food value chain .
Diversification in the coming years Senwes diversifies geographically and across commodities . However , we specifically focus on maize , sunflower , soybeans and wheat - this is what we know best . One has to look at the trends over a few years .
The core of the business The core of the business is higher volumes , since market access is volume driven . Our income is not derived from the maize price , but is determined by volume , which increased by 180 % over the past year . However , in respect of soft commodities it is never fair to evaluate the results of a single year since this could be very misleading .
TOWARDS 2030 It is a tragedy that the infrastructure of the country is not being maintained and is being abused . It could take up to ten years for water , road , rail , power and distribution networks to function properly . Investors bear this in mind .
The 2019 election The election is around the corner and volatility is at the order of the day . In the political arena good is challenging evil . The temperature of the land debate is heating up , strikes are taking place on a regular basis and labourers are being incited in order to create unrealistic expectations . It is impossible not to get involved , but it has to be done in a circumspect manner . A ' wait-and-see ' attitude is evident in respect of capital projects . The biggest danger at this time involves the poor - it is problematic that aspects which are wrong , are being made to look very attractive to the poor .
Investments - innovatively into the future Senwes will be investing R40 million in information technology over the next year .
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SENWES SCENARIO | SPRING 2018