South Africa: Capespan operating profit spike in H1 -

South Africa: Capespan operating profit spike in H1

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South Africa: Capespan operating profit spike in H1

South African fruit company Capespan has recorded a ZAR23.2 million (US$3.1 million) increase in operating profit in the first half of 2011, but forecasts a challenging year ahead.

The company has attributed the ZAR27.5 million (US$3.69 million) result to improved results from its fruit and logistics divisions, which were able to achieve growth despite a 3.3% appreciation of the currency and difficult weather conditions.

In the company's unaudited results report, managing director Johan Dique pointed to challenging macroeconomic conditions in the second half.

"The global climatic conditions have taken a dramatic turn and there is a strong risk of a double dip recession. International markets are not strong at present which is hampering the volumes being exported out of South Africa," he said.

"The lower South African citrus industry volumes will impact negatively on the through put in port terminals, negatively impacting the profitability of the Logistics Division. The Rand is extremely volatile at present and has shown signs of weakening which will improve the translation of foreign income streams.

"The Group generates the majority of its profits in the second half of the year. The remaining six months will be challenging - the Group is continuing to focus on growing its revenue and footprint in its core business unit. This combined with the focus on the disposal of non-core assets will bring greater clarity and focus in improving the balance sheet management of the Group."

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