Crookes Brothers poised for more growth

Estimations were for a 30% increase in cane‚ banana and deciduous fruit production over four years‚ taking into account only the projects currently being implemented‚ he said at the group's annual meeting in Durban on Friday.

Crookes reported a 189% rise in headline earnings to R73m in the year to March 31 2012‚ ending two years of much weaker earnings. The dividend was raised 25% to 200c. Cash generated from operations rose to R62.2m from R41.6m.

Firmer product prices‚ favourable exchange rates‚ better cost containment and production increases and improvements all contributed to last year's increase in earnings‚ said chairman Guy Wayne.

Crookes operates eight estates in three southern African countries producing cane‚ bananas‚ deciduous fruit‚ grain and sheep. A ninth estate is being set up in Mozambique to produce macadamias and other annual crops. Cane makes up 80% of operating profit and South African-based operations contribute 73% to operating profit‚ but this number was expected to decline as more developments were established in Southern Africa Development Community (SADC) countries.

Clarke said there were many good opportunities in SADC countries in view of abundant water‚ land and labour resources. Several expansion opportunities were being evaluated and a cautious investment approach was being adopted.

The group was expected to continue growing earnings in the new financial year in spite of forecasts of lower cane yields‚ in line with industry trends‚ at the Mpumalanga and Swaziland estates.

The Mozambique macadamia venture had potential to become a significant contributor to profits in the long term‚ Clarke said.