South African agricultural investment group Zeder has reported increased earnings for the year ending 28 February 2011.
The company announced that recurring headline earnings increased by 27.2 per cent to R264.7 million.
Stellenbosch-based Zeder is a long-term investor in the agriculture, food and beverage sectors. The current value of its portfolio is R2.5 billion, of which Kaap Agri and Capevin Holdings represent 78 per cent.
During the year under review, the group invested R211.8 million to increase its interests in existing investments trading at what it called “attractive values”.
“Zeder remains confident in the continued importance of the agri, food and beverage sectors and will continue investing in such,” the company said in a statement. “Current cash of R206 million and funding resources of R250 million provide Zeder with the necessary means to continue acquiring assets at low price-earnings multiples and price-to-book values.”
Zeder increased its interest in Kaap Agri from 41.3 per cent to 43.9 per cent during the year. Kaap Agri’s own operations, together with its 31.2 per cent economic interest in Pioneer Foods, continued to deliver strong results, the company said. Zeder also increased its interests in Capevin Holdings, to 39.5 per cent; and Capespan, from 14.6 per cent to 22.7 per cent.
Zeder invests in unlisted companies via the purchase of shares. “The investment approach is value-oriented and contrarian, which is considered vital for generating attractive long-term investment returns of a highly cyclical nature,” the company states on its website.
