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Salient features
- Value of business transactions up 11,4% to R15,3 billion.
- Operating profit up 24,5% to R332,2 million.
- Profit before tax up 46,9% to R273,0 million.
- Headline earnings per share up 38,2% to 241,3 cents.
- Basic earnings per share up 46,4% to 245,3 cents.
- Free cash flow of R352,0 million (FY25: R50,6 million).
- Net interest-bearing debt down 53,0% to R262,4 million.
- Return on funds employed of 16,7% (FY25: 13,0%).
- Proposed gross dividend of 73 cents per share (FY25: 50 cents).
Commentary
BKB delivered the strongest financial performance in its history for the year ended 30 June 2026. The year combined a strong recovery in wool and mohair prices, a record grain harvest sold into weak prices, the most severe foot-and-mouth disease outbreak in decades, and an unusually wet season that reduced demand for supplementary feed.
Natural Fibre benefited from the price recovery, from the Group’s United States business returning to profit after tariffs suspended trade late in FY25, and from a lower fixed cost base. Retail and Fuel replaced lost feed margin through veterinary products, horticulture and petroleum. PaKHouse Brands handled record grain volumes into weak prices, while consumer goods grew volumes across retail and industrial channels against strong competitive pressure on margins. Livestock and Properties absorbed the impact of foot-and-mouth disease together with a further and final impairment against a single legacy customer debt; excluding that charge the division would have exceeded the prior year. Segmental information is set out in note 1 to the annual financial statements.
Cash conversion was the standout feature. Free cash flow of R352,0 million funded capital expenditure, dividends, share buy-backs and a R296,3 million reduction in net interest-bearing debt. Return on funds employed moved above the Group’s cost-of-capital hurdle for the first time.
Dividend declaration
Notice is hereby given that the Board has declared a gross dividend of 73 cents per BKB share out of income reserves for the year ended 30 June 2026. The local dividend withholding tax rate is 20%, resulting in 14.6 cents per BKB share in dividend withholding tax and a net dividend of 58.4 cents per BKB share, for shareholders who are not exempt. The Company’s income tax reference number is 9300001717 and there were 87 715 914 ordinary BKB shares in issue (which includes 9 005 559 (nine million five thousand five hundred and fifty-nine) treasury shares) at the declaration date. To the extent that BKB shareholders are in any doubt as to the tax implications of the BKB dividend, such shareholders are encouraged to consult their professional advisors for individual advice. – BKB, press release
The full annual report is available on BKB’s website on the following link.
