Cresta Marakanelo 2021 sales revenue up 7% at US$18.4m

Published On: April 12, 2022By Tags: Southern-Africa

Cresta Marakanelo 2021 sales revenue were up 7% to US$18.4m over 2020.

Highlights:

  • The good news is that since the lifting of Covid restrictions in October 2021, Cresta’s H2 2021 losses were 20% of the H1 2021 losses and sales revenues increased 24% in Q4 2021 vs Q4 2020.
  • 2021 operating margins improved to -13% from -18% in 2020. H2 2021 operating margins also improved at -8%.
  • Cresta has a high long-term debt/equity ratio of 260% largely due to the 2019 acquisition of four hotels, previously leased, funded by debt (Pula 252m (US$23m)) which has a term until 2029.
  • Flour volumes were up 3%, maize volumes down 7% and animal feeds volume were up 16% in H1 2021. Other food manufacturing showed positive volume increases.
  • Cresta’s management is positive and is in discussions regarding further hotel development.

Will a rights issue be needed to reduce the long-term debt/equity ratio and fund the hotel acquisition plans?

Download the full report


Sign up to The Investor Mailing List to receive equities reports for listed companies in Sub-Saharan African markets in your email inbox and to AfricanFinancials’ Equity Valuation Insights LinkedIn page for access to African stock market valuation insights, annual and earnings reports.

About the Author: Hartland-Peel Africa Equity Research

Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.

Related articles