Chamwe Kaira
KAL Group, the holding company of Agrimark, has reported strong growth for the 2025 financial year, driven by expansion initiatives and improved operating efficiencies across its businesses.
The KAL Group operates 89 stores across South Africa and Namibia, including 25 Agrimark outlets in Namibia.
Since 2011, the group has delivered a compound annual growth rate of 12.7% in recurring headline earnings per share.
For the year under review, the group generated N$20.3 billion in revenue.
This was achieved despite an 11% decline in fuel prices, which make up 53% of total sales. Agri-inputs grew by 8.2%, while fuel volumes edged up by 0.8%.
PEG Retail expanded its footprint and convenience offerings, supporting overall growth.
Earnings before interest, taxes, depreciation and amortisation increased by 7.5%. The growth was supported by market share gains, improved retail margins, and tighter control of operating costs.
KAL Group also reduced its debt to the lowest level in 15 years while maintaining a disciplined capital expenditure programme.
Strategic expansion continued, particularly in commercial fuel and convenience retail, which supported a recovery in fuel volumes and stronger agri-related farm spending. Recurring headline earnings rose by 10.1%, keeping the group on track to meet its long-term growth targets.
The group serves agricultural producers, motorists using fuel and convenience services, and general retail customers. Its operations are organised into three segments: Agrimark Operations, PEG Retail Operations, and Agrimark Grain.
Agrimark contributed 40.7% of group revenue, up from the previous year, while PEG accounted for 54.4%, underlining the importance of retail activities.
Agrimark Grain maintained profit before tax at N$64.2 million despite a 16% drop in wheat volumes, supported by increased handling of alternative grains. PEG’s profit before tax grew by 10.95% on a like-for-like basis, driven by convenience retail and quick-service restaurant performance.
The group declared a 16.7% increase in total dividends to 210 cents per share, supported by low debt levels and a strong balance sheet.
Looking ahead, KAL Group said it is well positioned to benefit from favourable agricultural conditions, lower fuel prices, easing interest rates and potential economic stimulus.
“With strong strategic momentum, a healthy balance sheet, and a diversified portfolio, the group remains committed to creating long-term value for shareholders, communities, and stakeholders while powering growth from farm to fork.”
Caption
Agrimark operates 25 Agrimark outlets in Namibia.
