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Despite trying economic times, BKB, the agricultural business with its headquarters in Gqeberha, has delivered a relatively strong financial performance in 2025 with a nett profit of almost R132 million, which is 51% higher than in the previous financial year.
Johan Stumpf, managing director of BKB, attributed the strong gains to the company’s disciplined consolidation strategy over recent years. Total value of business transactions increased by 3,8% to R13,7 billion, while total revenue for continuing operations grew by 3% to R6,8 billion.
A dividend of 50 cents per share was declared. Given that BKB’s share price is trading at a relatively low level, this translates to a dividend yield of 9,8% Jannie van Niekerk, BKB’s financial director, told Plaas Media. “The perspective we need to keep in mind is that last year we still had businesses on the books that were operating at a loss.” Those businesses have been closed, but the loss was still reflected in the previous years’ financials. “Every business that’s still in our portfolio is making a positive contribution to the company.”
Stumpf said while the livestock segments of their business – wool, mohair, and live auctions – did not perform as well as in the past, one needs to keep in mind that this was only a portion of the group’s business. Most divisions contributed significantly to the results, reflecting the resilience of BKB’s diversified portfolio.
Natural fibre
The natural fibre division faced weaker performance as international wool prices remained depressed due to global macroeconomic and geopolitical factors, resulting in lower commissions earned. Wool trading within Pinnacle Fibres was significantly impacted by the tariffs imposed between the United States (US) and China, as well as local harbour delays, which restricted sales and margins achieved. House of Fibre, the mohair brokerage division, was impacted by severe market volatility, with demand recoveries proving short-lived amid global instability and consumer pressure. Despite this, the business continued to gain market share in a highly competitive environment.
Livestock
The livestock division delivered improved results, supported by stronger red meat prices in the second half of the year, and strategic growth through online auctions and alliances. However, foot-and-mouth disease (FMD) outbreaks disrupted auctions, and debtors required strict management. Property recorded a turnaround with strong farm property sales, although the residential market remained under pressure.
Retail and fuel
The retail and fuel division achieved stable profitability, with fuel volumes up 3% year-on-year, supported by site upgrades and expansions. Lower feed demand and delayed harvests impacted turnover, but the division focussed on diversification, waste reduction, and working capital optimisation.
Agricultural supply chain management
PaKHouse Brands outperformed expectations and delivered a strong contribution to the Group’s overall results, following the successful restructuring of the business. Despite subdued demand from informal markets and competition from cheaper imported sugar, the Consumer Goods division, through Atlanta Sugar, managed to outperform targets and is now consistently delivering strong profits. Optimised milling at the Bethlehem grit mill supported sales growth amid local market pressures. The milling operation replicated its strong performance of the prior year.
Future outlook
Despite global and domestic headwinds such as tariffs, weaker fibre demand, animal disease outbreaks, and South Africa’s constrained economy, BKB’s broad platform of businesses once again proved resilient.
Over the past five years, BKB has reshaped itself into a digitally enabled, vertically integrated agri-business. Key initiatives included streamlining the portfolio, reducing debt and finance costs, investing in on-farm management digital platforms like Decision Support Services (DSS), supporting sustainability through regenerative programmes such as NXT, and enhancing shareholder value through share buy-back initiatives.
Looking ahead, strategic priorities include the successful expansion of the Gritco mill, further progress within the livestock division, and improving returns through selective growth opportunities. BKB’s full annual financial statements are available at BKB’s official website. – Susan Marais, Plaas Media
