Zeder Investments' net asset value per share falls after returning nearly R1bn to shareholsers
Johann le Roux, the CEO of Zeder. He said that by February 29, 2025, they had a stable balance sheet and sufficient cash resources to tackle challenges in the new financial year.
Image: Supplied
Zeder Investments, the JSE-listed company with agribusiness investments, said Thursday that net asset value per share (NAVPS( fell by 28.6% for the year to February 28 due to special dividends paid and the lower valuation of an associate investment in Turkey.
Zeder's NAVPS was R1.77 at the year end, or 71 cents per share lower, when compared to NAVPS of R2.48 at February 28, 2024. The share price fell by 1.4% to R1.44 on Thursday afternoon after experiencing much volatility this year in line with the general stock market, CEO Johann le Roux said in a presentation.
The company paid out an aggregate of 61 cents per share in special dividends during the past year, much higher than the 15 cents a share paid out in 2023.
Le Roux said their strategy remained to create maximum wealth for shareholders, and last year R939 million was returned to shareholders.
Although the group held just over R200m in cash, no dividends were declared for the year ended February 28 due to the uncertain macro-economic environment, but the intention was to declare further dividends at a later stage, said Le Roux.
There had been a downward adjustment in the valuation of holding company Zaad, following the lower valuation of its associate investment in Turkey. The lower valuation of Zaad's African operations reported in the interim results was offest by an improvement in the valuation of most South African seed and chemical operations.
Le Roux said trading conditions were difficult in Turkey with high inflation and interest rates, but management was optimistic about May Seed's prospects for the upcoming season.
Headline earnings per share plunged from a profit of 0.8 cents in the previous year to a loss of 10.0 cents, mainly as a result of the downward valuation of the unlisted investments.
At the close of business on April 11, 2025, Zeder's Sum-of-the-Parts (SOTP) value per share amounted to R1.77, with cash increasing as a result of the further R54m special dividend received from Pome Investments, with the resultant decrease in the valuation of Pome Investments.
In November and December, Zeder's indirect subsidiary, Capespan Agri, sold its three primary farming production units and the Novo fruit packhouse to various third parties for R713m, of which R621m equated to Zeder's 87.1% interest, and for which R483m had been received so far.
As a result, Zeder had declared and paid special dividends in aggregate of R477m, or 31 cents per share, to shareholders in November and December. Accordingly, Zeder's SOTP valuation of Pome Investments had been adjusted to reflect the decrease in its net asset value as a result of the special dividends received by Zeder.
Zeder Financial Services received a further special dividend of R54m from Pome Investments subsequent to year-end, on March 19, 2025.
During December 2024, the final earn-out payment of R30m was received in cash, arising from the 2022 disposal of The Logistics Group.
Zeder's board has remained in talks with third parties about Zaad, and further wealth maximising strategies were being assessed.
On March 26, a sale of shares agreement was reached by Zaad with ETG Inputs to dispose of its operations in Zimbabwe, Mozambique, and Zambia, including the intellectual property rights associated with said operations held by Bakker Brothers in the Netherlands, as one transaction, for R135m.
'The macro environment in which Zeder and its portfolio companies operate remained relatively constrained during the year, mainly due to volatile weather patterns, various risks associated with global market dynamics, and the continued conflicts in the Middle East and Eastern Europe,' the company's directors said.
Le Roux said they anticipated that the uncertainty and volatility in the markets that Zeder operates in will continue for the short- to medium-term, but the company was well positioned with a stable balance sheet and sufficient cash resources.
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