Africa’s leading farm Crookes Brothers warns of steep full-year earnings decline after weather-hit first half

Crookes Brothers Limited, one of Africa’s leading agribusiness groups, is bracing for a sharp deterioration in full-year earnings to March 31, 2026, after a weak first half marked by extreme weather events, crop damage and persistent commodity price pressure across its Southern African operations.

The Johannesburg Stock Exchange-listed agribusiness said it expects a significant drop in profitability, anticipating a basic loss per share ranging between R16.16 ($0.12) and R17.06 ($0.13), a significant reversal from earnings of R4.46 ($0.03) per share recorded in the prior year.

Earnings hit by operational pressures

The projected decline reflects lower earnings across the company’s divisions, driven primarily by sustained pressure on sugar prices, delays in land sales, and weaker overall operating conditions. The downturn highlights the vulnerability of agricultural and land-based revenue streams to pricing cycles and execution delays, particularly in volatile commodity markets.

In the six months to September 2025, Crookes Brothers recorded revenue of R492.2 million ($28.8 million), down 5% year-on-year, as storms, water stress and softer commodity prices disrupted production across key crops.

Headline earnings plunge

Headline earnings per share (HEPS), a key profitability metric, is expected to fall sharply to between R0.024 and R0.279 per share. This represents a drop of between approximately 93% and 99% compared to R4.25 per share reported a year earlier.

The company attributed part of the earnings pressure to an anticipated capital impairment of about R256 million in its macadamia segment, linked to underperformance. The impairment, however, is excluded from HEPS calculations and therefore does not affect the headline earnings figure.

Outlook: uneven recovery across segments

Looking ahead, Crookes Brothers expects continued pressure in South Africa and Eswatini sugar markets due to weaker global prices and rising imports, though stronger pricing in Zambia may offer partial relief. Banana output is projected to improve between November and February as conditions normalize, while macadamia operations in Mozambique are undergoing a management overhaul to stabilize yields and orchard productivity.

At the Renishaw property development, the company said several land-sale negotiations are progressing, although some transactions may only conclude after March 2026.

Navigating volatility through restructuring

Despite persistent commodity volatility and climate-related disruptions, Crookes Brothers is focusing on cost efficiency, land-use conversion and operational restructuring across its regional footprint. Management said initiatives including crop diversification, energy investments and turnaround efforts in Mozambique are expected to support longer-term earnings stability as the group navigates a highly cyclical agricultural environment.