Business

116-year-old South African company loses R1.99 billion in a single day

Malcolm Libera

 ·17 Aug 2026

South African logistics and financial services group Grindrod saw almost R2 billion wiped off its market value in a single day after investors reacted to a sharp expected decline in its statutory earnings.

Grindrod’s share price fell by R2.85, or 11.35%, on Wednesday, 12 August 2026, dropping from R25.10 to R22.25 following the release of its trading statement for the six months ended 30 June 2026.

Based on the company’s 698 million issued ordinary shares, the decline reduced Grindrod’s market capitalisation by approximately R1.99 billion in a single trading session.

In its trading statement, Grindrod noted that it expects earnings for the first half of 2026 to range between R573.3 million and R623.3 million.

This represents a decline of between 57.5% and 60.9% from the R1.47 billion reported in the corresponding period last year.

Earnings per share are expected to fall by the same percentage range, from 219.8 cents to between 85.9 cents and 93.4 cents.

Grindrod also expects headline earnings of between R567.6 million and R617.6 million, compared with R592.2 million in the previous comparable period.

Headline earnings per share are expected to range between 85 cents and 92.5 cents, compared with 88.7 cents previously. This represents a possible decline of 4.2% or an increase of up to 4.3%.

The difference is largely due to once-off gains recorded in the previous financial year. Grindrod said the comparative period benefited from R902.8 million in net non-recurring gains.

These were mainly related to the release of foreign currency translation reserves following the acquisition of the remaining 35% interest in the Matola terminal joint venture and the exit from its marine fuel trading joint venture.

As these gains were not repeated in the current period, statutory earnings are expected to decline substantially, even though the underlying performance of the business has remained relatively stable.

Share price recovery

Founded in Durban in 1910, the business initially focused on maritime services as a clearing, forwarding and marine surveying agency.

It expanded into ship agency work and coastal shipping in the following years, and its operations eventually became part of African Coasters.

The company grew significantly after restrictions on coastal shipping were abolished in 1954. Union Corporation acquired a 51% stake in African Coasters in 1964, while a subsequent merger with Smith’s Coasters created Unicorn Lines in 1966.

Unicorn went on to develop container infrastructure at several South African ports and at City Deep in Johannesburg.

The Grindrod family regained control in the 1980s, and Grindrod Unicorn Group, or Grincor, was listed on the JSE in 1986.

The group subsequently expanded into bulk terminals, shipping, logistics, rail and financial services.

It acquired Island View Shipping in 1998 and also developed an interest in the Port of Maputo in Mozambique, establishing an important regional trade corridor.

During the 2000s, Grindrod expanded into financial services, including banking, while continuing to build its logistics and freight infrastructure.

The group later simplified its structure and focused more closely on sub-Saharan African freight corridors. Its international shipping business was separated into Grindrod Shipping Holdings, which was listed on Nasdaq and the JSE.

Today, Grindrod’s operations are largely centred on freight and financial services, with its freight activities including ports, terminals, logistics, and rail infrastructure.

The share price has since recovered some of its losses. After falling to R22.25, it climbed to R24.03, recovering 62.5% of the R2.85 decline.

However, at R24.03, the share remained R1.07, or 4.26%, below its R25.10 closing price before the trading statement.

Grindrod is due to publish its final results for the six months ended 30 June on Tuesday, 25 August 2026, which will provide a fuller picture of its financial performance.