At a Glance
- Severe storms and lower commodity prices drive sharp earnings decline across major crop segments.
- Strong cash flow and strategic land conversion bolster resilience despite broad profit pressure.
- Banana and macadamia operations record steep losses due to damage, yield drops and weak pricing.
Crookes Brothers, one of South Africa’s largest farming groups, sees earnings fall sharply in the first half of 2025 as extreme weather, crop damage and weaker commodity prices weighed heavily on one of Africa’s largest diversified farming groups.
According to its recently released half-year report, the KwaZulu-Natal–based agribusiness, which operates across South Africa, Mozambique, Zambia and Eswatini, posted half-year revenue of R492.2 million ($28.8 million), a 5 percent decline from the previous year.
Weather shocks and softer prices cut deep into profit
Operating profit after biological assets dropped 51 percent to R46.7 million ($2.73 million) as storms, water stress and lower market prices affected nearly all crop segments.
Total profit fell to R29.3 million ($1.72 million), down from R60.5 million ($3.54 million) a year earlier. Biological asset valuations also weakened, with sugar cane and macadamias harvested and sold at lower prices.
Basic earnings per share declined to R1.28 ($0.07), while headline earnings per share fell to R1.27 ($0.07).
Segment breakdown: sugar steady, bananas and macadamias slump
Sugar cane, the company’s largest contributor, delivered stable revenue of R393.6 million ($23.01 million), supported by record Zambian sugar pricing.
However, irrigation costs climbed due to poor Lowveld rainfall and rising electricity tariffs, causing operating profit to fall 9 percent to R116.8 million ($6.83 million).
The banana division recorded its weakest performance in years. Revenue dropped 29 percent to R62.1 million ($3.63 million) as storms, hail and poor plant growth cut volumes.
More than 40,000 plants were destroyed at the Mawecro estate, crashing operating profit to R7.9 million ($462,328) from R27.1 million ($1.59 million).
Macadamias suffered another difficult cycle, with revenue dropping 23 percent to R20.7 million ($1.21 million). Lower yields and storm-related orchard damage widened operating losses to R39.4 million ($2.31 million).
The property division, centered on the Renishaw Coastal Precinct, saw revenue halve to R2.5 million ($146,305) as unit sales slowed, resulting in an operating loss of R7.2 million ($421,359).
Cash flow remains resilient despite profit pressure
The group delivered strong operating cash flow of R120.1 million ($7.03 million), supported by disciplined working-capital management.
Net cash from operations reached R94.7 million ($5.54 million), while interest costs fell 6 percent to R17.5 million ($1.02 million). Capex rose to R38.9 million ($2.28 million), driven mainly by the 150-hectare Nicoskamp “banana-to-cane” conversion project.
Crookes Brothers also secured Land Bank funding for a new solar plant at Mawecro, reducing dependence on commercial facilities.
Outlook: pressure persists, but reforms underway
The company expects continued sugar-market pressure in South Africa and Eswatini due to weaker global export prices and rising imports. However, Zambia’s record sugar prices may provide relief.
Banana prices have begun to recover, and output is expected to increase between November and February. The Mozambique macadamia division is undergoing a management overhaul aimed at stabilizing yield quality and orchard productivity.
At Renishaw, multiple land-sale negotiations are advancing, though some closures may occur only after March 2026.
Holding steady through volatility
Despite commodity volatility and severe weather disruptions, Crookes Brothers is prioritizing cost efficiency, land-use restructuring and long-term value creation.
Strategic initiatives, including land conversion, operational recovery in Mozambique and development progress at Renishaware expected to strengthen earnings stability. Renishaw, are expected to strengthen earnings stability.
