Crookes Brothers reported a R274 million loss for the 12 months ending March, a sharp reversal from the R89.8 million profit recorded the previous year. The agricultural group, which operates in sugar, bananas, macadamia nuts, and property, attributed the downturn to severe weather, civil unrest, and rising input costs, according to the company’s latest financial results.
Why did the macadamia segment record a R299.23 million operating loss?
The macadamia nut division served as the primary driver of the group’s financial decline, sliding from a R29.11 million operating profit the year prior. According to the company directors, a tornado-like storm in October 2024 uprooted approximately 210 hectares of trees (approximately 36% of the planted area), 70 hectares of which were completely destroyed.
Beyond the physical destruction, the segment faced operational paralysis. Civil unrest between October 2024 and March 2025 hindered labor availability, preventing critical spraying programs and delaying necessary repairs to the processing plant. Consequently, the group reported lower nut quality and weaker realized selling prices. Crookes Brothers has now signaled a planned exit from the macadamia segment to prioritize liquidity and focus on core agricultural and property operations.
The banana segment remained a point of resilience for the group, outperforming production targets despite a localized windstorm at the Mawecro operation.
How is the sugar segment responding to market pressures?
The sugar division continues to navigate a difficult environment defined by soft pricing and competition from imports. Directors noted that the strength of the Rand and the Kwacha against the US dollar has further constrained export competitiveness. To protect margins, the group is prioritizing yield maximization and quality control.
The group views the signing of Phase Two of the South African Sugar Cane Value Chain Master Plan as a positive signal. Additionally, the company expects an imminent announcement of an expected increase in the dollar-based reference price import tariff, which is intended to curb the influx of low-cost sugar into the South African market.
What is the growth strategy for the property division?
The property division is emerging as a key growth driver, entering the new financial year with a strengthened project pipeline. The Restilridge Farm Estate residential project has been identified as a key growth driver, with bulk infrastructure already complete. According to company reports, the group is maintaining a “cash-neutral” funding approach, aligning development spend with pre-sales.
Meanwhile, the Renishaw Coastal Precinct is moving forward. The group is currently in advanced negotiations for the sale of a medical site, a school site, and a medium-density mixed-use site, while construction continues on the remaining subphases of Phase 7 of the Renishaw Hills development.
When evaluating agricultural stocks, pay close attention to biological asset valuations. Crookes Brothers reported a negative R20.6 million change in fair value for its agricultural assets this year, compared to a positive R15.42 million the previous year.
Frequently Asked Questions
What caused the significant drop in Crookes Brothers’ revenue?
Revenue fell 7% to R777.59 million, largely due to the collapse of the macadamia segment, which suffered from severe storm damage and labor disruptions caused by civil unrest.
How did the banana segment perform compared to other units?
The banana segment remained robust, delivering an operating profit of R41.2 million. The group’s associates, Quinta Da Bela Vista (QBV) and Lebombo Growers, saw equity-accounted profits rise to R13.1 million, up from R8.5 million.
What is the group’s outlook for the coming year?
Management has forecast another challenging year, citing persistent upward pressure on input costs due to conflict in the Middle East and ongoing volatility in sugar pricing.
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