Wrap Text
Financial results for the year ended 31 March 2026
Crookes Brothers Limited
(Incorporated in the Republic of South Africa)
(Registration number 1913/000290/06)
Share code: CKS ISIN: ZAE000001434
(Main Board – General Segment)
("Crookes Brothers" or "the Group" or "the Company")
Financial results for the year ended 31 March 2026
Group Group
Year ended Year ended %
Financial overview Index 31 March 2026 31 March 2025 change
Revenue R'000 777 586 833 812 (7)
Operating (loss)/profit before biological assets R'000 (209 896) 117 108 (279)
Change in fair value of biological assets R'000 (29 581) 15 419 (292)
Operating (loss)/profit after biological assets R'000 (239 477) 132 527 (281)
Share of profit of joint venture and associate R'000 13 112 8 494 54
Investment income R'000 12 186 14 556 (16)
Finance costs (excl unrealised foreign exchange losses) R'000 (40 770) (41 469) (2)
(Loss)/profit for the year R'000 (274 023) 89 823 (405)
Headline (loss)/earnings R'000 (25 524) 64 893 (139)
Shareholders' equity R'000 811 634 1 110 218 (27)
Cash generated from operations R'000 102 487 177 874 (42)
Cash generated by operating activities R'000 60 446 100 836 (40)
Weighted average number of ordinary shares shares 15 264 317 15 264 317 -
Net asset value per share cents 5 317 7 273 (27)
Cash flow from operating activities per share cents 396,0 660,6 (40)
Basic (loss)/earnings per share cents (1 869,4) 446,4 (519)
Headline (loss)/earnings per share cents (167,2) 425,1 (139)
Dividend per share cents - 150,0 (100)
Year ended Year ended %
Segmental results Index 31 March 2026 31 March 2025 change
Sugar cane
Revenue R'000 522 007 519 832 -
Operating profit before biological assets R'000 147 129 143 993 2
Change in fair value of biological assets R'000 (30 464) 3 919 (877)
Operating profit after biological assets R'000 83 913 147 912 (43)
Bananas
Revenue R'000 179 400 198 408 (10)
Operating profit before biological assets R'000 38 810 49 874 (22)
Change in fair value of biological assets R'000 2 355 1 758 34
Operating profit after biological assets R'000 41 165 51 632 (20)
Macadamias
Revenue R'000 20 234 29 106 (30)
Operating loss before biological assets R'000 (299 278) (35 555) (742)
Change in fair value of biological assets R'000 (1 472) 9 742 (115)
Operating loss after biological assets R'000 (300 750) (25 813) (1 065)
Property
Revenue R'000 28 867 63 460 (55)
Operating (loss)/profit R'000 (6 790) 20 473 (133)
Other operations
Revenue R'000 27 078 23 006 18
Operating loss R'000 (1 772) (7 178) (75)
COMMENTARY
After delivering a strong performance in the prior year, the Group faced a more difficult operating
environment during the financial year ended 31 March 2026 ("current reporting period").
Commodity prices remained subdued while input costs continued to rise, compressing margins across the
portfolio. Against this backdrop the Group maintained its strong focus on controllable factors. Through
disciplined operational execution, consistent replanting programmes and a continued emphasis on quality,
the Group achieved good yields and maintained product quality across most operations. While these efforts
could not fully offset the impact of lower prices and rising input costs, they strengthened the resilience of the
core sugar cane and banana segments, enabling them to continue making positive contributions during the
year.
Consequently, headline earnings declined to a headline loss of R25.5 million (2025: headline earnings of
R64.9 million).
As part of its ongoing focus on capital allocation the Board continued its strategic review of the Group's
portfolio and, subsequent to year-end, resolved to exit the macadamia segment following continuing and
ongoing losses at its Mozambique operation, resulting in an impairment loss of R258.8 million. This will enable
the Group to focus its capital and management attention on the sugar cane and banana segments, where
its competitive strengths are most established.
FINANCIAL PERFORMANCE
Revenue decreased by 7% to R777.6 million (2025: R833.8 million).
The fair value of biological assets decreased by R29.6 million (2025: increase of R15.4 million), primarily due to
lower price expectations on the sugar cane crop compared to the prior year.
Operating profit after biological assets declined to R19.3 million before the impairment loss of R258.8 million in
respect of Murrimo Macadamias Limited (MML) (2025: profit of R132.5 million). This impairment reduces the
carrying value of the macadamia investment to nil and follows previous impairments on this investment,
which cumulatively totalled R326.7 million. After the impairment, the Group reported an operating loss of
R239.5 million.
The Group's equity accounted share of profits from its banana associates, Quinta Da Bela Vista (QBV) and
Lebombo Growers, increased to R13.1 million (2025: R8.5 million). The increase is attributable to improved
profitability at QBV, driven by quality enhancements that resulted in a higher proportion of the crop being
classified and sold as first-grade.
Finance costs (excluding unrealised foreign exchange losses) decreased by 2% to R40.8 million (2025: R41.5
million). Actual net interest (finance costs less IFRS 16 interest and interest income) on bank borrowings
increased by R1.8 million to R15.3 million (2025: R13.5 million).
The total loss for the period, amounted to R274 million (2025: profit for the year of R89.8 million), with the
macadamia impairment being the primary driver.
The basic loss per share is 1 869.4 cents (2025: basic earnings per share of 446.4 cents).
Headline loss per share, which excludes the impairment loss, decreased to a loss of 167.2 cents (2025:
headline earnings per share 425.1 cents), reflecting the underlying trading performance of the Group's
continuing operations.
SEGMENTAL PERFORMANCE
Sugar cane
Revenue from sugar cane increased by R2.2 million to R522.0 million (2025: R519.8 million).
Production increased by 3% to 552 279 tons (2025: 536 913 tons), supported by a consistent replanting
programme and a 3% average improvement in sugar cane pricing per ton. In Zambia, the ERC price per ton
increased by 13.1%.
These gains were more than offset by lower prices in South Africa and Eswatini. The South African RV price
declined by R180 per ton (2.4%) and the Eswatini Sucrose price by R488 per ton (8%) reflecting weaker world
sugar prices, a stronger Rand and increased sugar imports into South Africa due to delayed import tariff
adjustments.
The fair value of the sugar cane biological asset declined by R30.5 million (2025: increase of R3.9 million),
reflecting lower forecast sugar prices and their effect on the valuation of the standing crop.
Operating profit after biological assets declined by 43% to R83.9 million (2025: R147.9 million).
Bananas
Revenue from the banana segment decreased by 10% to R179.4 million (2025: R198.4 million), largely due to
the planned conversion of the Nicoskamp farm from bananas to sugar cane to mitigate weather related
risks experienced in recent years. This reduced the area of bananas harvested during the year.
Banana yields per hectare across the Group remained robust. This was supported by the absence of major
adverse weather events – with the exception of a single destructive windstorm at Mawecro – together with
operational improvements and above average bunch masses.
Despite the reduction in planted area, the segment outperformed its production target, delivering an
operating profit of R41.2 million (2025: R51.6 million), which reflects the resilience of this core business.
Macadamias
Revenue from the macadamia segment declined by 30% to R20.3 million (2025: R29.1 million), reflecting a
reduced harvest of 857 tons in the 2025 season (2024 season: 1,040 tons). The primary driver was a
tornado like storm in October 2024, which uprooted approximately 210 hectares of trees (approximately 36%
of the planted area), 70 hectares of which were completely destroyed, and caused severe damage to the
macadamia processing plant.
Compounding these challenges, civil unrest from October 2024 to March 2025 disrupted labour availability,
interrupted critical spraying programmes and delaying repairs to the processing plant. The cumulative effect
was a deterioration in nut quality and lower realised selling prices during the period.
With a forecast 2026 harvest of 1 000 tons and expected prices of approximately US$2.71/kg (nut-in shell) the
fair value of the macadamia biological assets remained largely unchanged, decreasing marginally by R1.5
million, compared to a positive movement of R9.8 million in the prior year.
Operating losses for the segment, including an impairment loss recognised during the current year, increased
to R300.8 million (2025: loss of R25.8 million).
The business has external debt and has had the continued support of the Company through cash injections,
limiting free cash availability elsewhere in the business. The farm is situated in a location which has seen rising
operational, logistical, climatic, economic, transfer and political risks. The Board's decision to no longer
support the business was taken after careful consideration of these risks in the context of the Company's
strategic direction and economic position.
Property
Revenue from the property segment decreased to R28.9 million (2025: R63.5 million), primarily due to the
absence of concluded land sales in the Renishaw Coastal Precinct (2025: R28.5 million). While meaningful
progress was made in advancing several opportunities, including the healthcare sites and school site, delays
in execution resulted in no revenue being recognised during the year.
Renishaw Hills delivered steady sales momentum, with a notable shift toward off-plan purchases, particularly
in Phase 7, where 23 of the available 32 units were sold prior to construction completion, reflecting strong
buyer confidence and the established reputation of the development. This pre-sale performance was
instrumental in securing approval of the associated Investec development loan, which was subject to pre-
sale requirements.
The segment reported an operating profit decline to a loss of R6.8 million (2025: operating profit of R20.5
million) driven primarily by the absence of high-margin land sale revenue
Other operations
Revenue from other operations increased by 18% to R27.1 million (2025: R23.0 million). Growth was driven by
two factors: the sale of beans cultivated as a break crop at the Mawecro farm, and improved visitor
revenue at the Crocworld tourism facility following the completion of facility upgrades. The prior year also
included a one-off revenue reversal of R3.4 million relating to the discontinued deciduous operation.
The operating loss reduced to R1.8 million (2025: operating loss of R7.2 million) driven by the stronger revenue
performance.
CAPITAL EXPENDITURE
Capital expenditure for the year amounted to R77.3 million (2025: R81.6 million).
The main capital projects undertaken during the current reporting period were the banana to sugar cane
conversion at the Nicoskamp farm, where an area prone to hail was replanted with more hail resistant sugar
cane, as well as a 51-hectare sugar cane to banana conversion in Eswatini. Total area under bananas in
Eswatini is now 149 hectares.
Budgeted capital expenditure for the 2027 financial year is R69.6 million, of which R19.3 million comprises
property development expenditure that is conditional upon achieving contracted land sales within the
precinct.
The budget includes planned bearer replanting expenditure of R13.0 million, significantly lower than in the
current reporting period, reflecting the Board's cautious capital allocation approach in response to the
potential impact of geopolitical uncertainty in the Middle East on input costs. Replacement capital
expenditure is focused on critical assets and includes R10 million for irrigation pivot replacements.
LIQUIDITY AND FINANCING ACTIVITIES
Net cash generated from operating activities declined by 40% to R60.5 million (2025: R100.8 million),
reflecting subdued commodity prices and higher input costs.
The lower operating cash flows, together with spending on key capital projects and the construction of the
Phase 7 Renishaw Hills, resulted in an increase in borrowings during the year.
To support these investments, the Group elected to finance motor vehicle acquisitions through WesBank
instalment sale agreements and secured funding of R9.5 million from Land Bank for Mawecro to finance the
solar system constructed during the prior year. In addition, the final tranche of the Eswatini FNB loan,
amounting to R20 million, was drawn down to fund the 51-hectare banana expansion.
Interest paid on borrowings decreased by 14% to R32.3 million (2025: R37.8 million). This was largely
attributable to the Board's decision during the latter part of the financial year to cease providing funding to
MML, which consequently was unable to settle the AgDevco interest payment of R3.6 million due in
December 2025. The decision to cease funding and to commence the exit from MML was taken after
careful consideration and forms part of the Group's strategy to conserve cash and allocate capital to core
operations that meet the Group's risk-return requirements.
Net debt (total interest-bearing borrowings, net of cash balances) increased to R143.2 million (2025: R98.2
million).
OUTLOOK
The financial year ahead is expected to remain challenging. The ongoing conflict in the Middle East
continues to exert upward pressure on input costs across all segments. Sugar cane pricing remains under
pressure. Against this backdrop, the Group will maintain its focus on operational performance, cost
efficiencies and disciplined capital allocation.
In the sugar segment, a softer pricing environment is anticipated across all operating regions reflecting the
continued strength of the Rand and Kwacha against the US Dollar and, the sustained influx of imported
sugar into the South African market. The focus will remain on maximising yields and maintaining quality to
protect margins. The recent signing of Phase Two of the South African Sugar Cane Value Chain Master Plan is
seen as a positive development and the imminent announcement of an expected increase in the dollar-
based reference price import tariff will address the influx of low-cost sugar imports into the South African
market.
The banana segment successfully launched the new Crookes Brothers first-grade brand for fruit produced in
Eswatini and has been well received by the market. The Group intends to build on this platform by
establishing a dedicated sales and marketing capability to deepen market penetration and capture further
efficiencies along the value chain.
The property division enters the new financial year with a strengthened pipeline and the new residential
offering, Restilridge Farm Estate emerging as a key growth driver. With bulk infrastructure completed and the
market launch underway, it is well positioned to expand the mid-market offering while maintaining a
disciplined, cash-neutral funding approach aligned with pre-sales.
Construction of the remaining subphases of Phase 7 at Renishaw Hills will continue during the 2027 financial
year, funded through bank finance. The Renishaw Coastal Precinct continues to progress well, with
advanced negotiations underway for the sale of a medical site, the school site and a medium density mixed
use site.
The planned exit from the macadamia segment is expected to improve the Group's liquidity, enabling the
Group to focus capital and management attention on its core agricultural and property operations.
IN MEMORIAM
The Board and management of the Group record with deep sadness the passing of Nigel Naidoo, former
Chief Financial Officer, and Farzanah Mall, former Non-Executive Director. Both served with distinction over
many years and their contributions to the Company's financial stewardship, its governance, and its people
were immeasurable.
Nigel and Farzanah leave behind a legacy that will be cherished by all who had the privilege of working
alongside them. The Board extends its sincere condolences to their families.
CASH DIVIDEND DECLARATION
The board of directors has resolved not to declare a final dividend for the year ended 31 March 2026
(2025: 150.00 cents per ordinary share).
AUDIT OPINION
Deloitte & Touche expressed an unmodified audit opinion on the audited consolidated and company
annual financial statements for the financial year ended 31 March 2026 ("annual financial statements") in
their report dated 26 June 2026, which accompanies the annual financial statements.
SHORT-FORM ANNOUNCEMENT AND BASIS OF PREPARATION
This short-form announcement is the responsibility of the Board. This short-form announcement contains a
summary of the information included in the full annual financial statements and does not contain full or
complete details. The annual financial statements can be found at:
https://senspdf.jse.co.za/documents/2026/jse/isse/cks/cbl2026.pdf
Copies of the annual financial statements are also available for viewing on the company's website at
https://www.cbl.co.za/wp-content/uploads/2026/06/AFS_2026.pdf or may be requested in person at the
company's registered office at no charge, during office hours.
The annual financial statements have been prepared in accordance with IFRS, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as
issued by the Financial Reporting Standards Council and the requirements of the Companies Act and the JSE
Listing Requirements.
Any investment decisions by shareholders should be based on consideration of the full annual financial
statements and the risks inherent in an agricultural business of this kind.
Durban
26 June 2026
JSE Sponsor to Crookes Brothers
Questco Corporate Advisory (Pty) Ltd
Date: 26-06-2026 05:13:00
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