SENS-AI
CKS Trading Statement Neutral

CROOKES BROTHERS LIMITED - Trading Statement for the year ended 31 March 2026

Crookes Brothers Limited
Full analysis

What this filing means

Crookes Brothers warns of a 93% to 99% collapse in HEPS and a massive swing to a basic loss driven by broad-based operational pressure and a R256 million impairment.

The farming company warned that its profits have been almost completely wiped out due to lower sugar prices and delayed land sales. Additionally, they had to write down the value of their macadamia nut farms by R256 million because they are performing poorly.

Bull case

  • Core operations remain marginally profitable at the headline level, with HEPS projected to be between 2.35 and 27.85 cents per share.
  • The substantial R256 million capital impairment in the Macadamia segment is excluded from headline earnings and has no impact on HEPS.

Bear case

  • Basic earnings swing dramatically from a 446.4 cents profit in the prior year to a massive loss of between 1,616.26 and 1,705.54 cents per share.
  • Headline earnings per share are projected to collapse by 93% to 99% year-on-year, indicating severe operational distress.
  • The group is taking a R256 million capital impairment in the Macadamia segment due to fundamental underperformance.
  • Earnings pressure is broad-based across all group segments, driven by lower sugar prices and delayed land sales.
  • The financial figures provided in the trading statement remain unaudited and have not been reviewed by external auditors.
View original SENS announcement

AI-generated summary by SENS-AI, based on the original JSE SENS filing.

SENS-AI conclusion

Crookes Brothers expects to report a 93% to 99% collapse in headline earnings per share for the year ended 31 March 2026, alongside a massive swing to a basic loss of up to 1,705.54 cents per share. The severe deterioration is driven by broad-based operational pressure in sugar and land sales, compounded by a substantial R256 million capital impairment in the Macadamia segment due to underperformance. These are preliminary, unaudited trading statement figures, not final audited results, though the magnitude of the decline is structurally significant. Investor Takeaway: The near-total wipeout of headline earnings and a capital impairment approaching the company's entire market capitalization signal severe fundamental distress, overshadowing the optical deep discount to book value.

The earnings collapse is severe and broad-based. The fundamental thesis is severely compromised by the massive impairment and operational headwinds, demanding extreme caution from investors.

Decision framework

Current stance: Filing Strong Negative

Key drivers

  • Core operations remain marginally profitable at the headline level, with HEPS projected to be between 2.35 and 27.85 cents per share.
  • The substantial R256 million capital impairment in the Macadamia segment is excluded from headline earnings and has no impact on HEPS.

Key risks

  • Basic earnings swing dramatically from a 446.4 cents profit in the prior year to a massive loss of between 1,616.26 and 1,705.54 cents per share.
  • Headline earnings per share are projected to collapse by 93% to 99% year-on-year, indicating severe operational distress.
  • The group is taking a R256 million capital impairment in the Macadamia segment due to fundamental underperformance.

What would change the view

  • Management provides credible upward guidance with measurable support.
  • Margin/cash-flow quality improves in the next reporting cycle.
  • Risk factors in this filing are explicitly resolved by subsequent disclosures.

Evidence from the filing

  • Core operations remain marginally profitable at the headline level, with HEPS projected to be between 2.35 and 27.85 cents per share.

    “a headline earnings per share ("HEPS") of between 2.35 and 27.85 cents per share”

  • The substantial R256 million capital impairment in the Macadamia segment is excluded from headline earnings and has no impact on HEPS.

    “The impairment is excluded from the calculation of headline earnings and, accordingly, has no impact on HEPS.”

  • Basic earnings swing dramatically from a 446.4 cents profit in the prior year to a massive loss of between 1,616.26 and 1,705.54 cents per share.

    “a basic loss per share of between 1 616.26 and 1 705.54 cents per share (when compared to the earnings per share of 446.4 cents per share reported for the year ended 31 March 2025)”

  • Headline earnings per share are projected to collapse by 93% to 99% year-on-year, indicating severe operational distress.

    “a decrease of between 93% and 99%, when compared to the HEPS of 425.1 cents per share reported for the year ended 31 March 2025”

  • The group is taking a R256 million capital impairment in the Macadamia segment due to fundamental underperformance.

    “together with an anticipated capital impairment of approximately R256 million in the Macadamia segment due to underperformance.”

  • Earnings pressure is broad-based across all group segments, driven by lower sugar prices and delayed land sales.

    “The expected decline in basic earnings is attributable to lower earnings across all the Group segments, primarily due to pressure on sugar prices, delayed land sales”

  • The financial figures provided in the trading statement remain unaudited and have not been reviewed by external auditors.

    “The financial information on which this trading statement is based is the responsibility of the Board and has not been reviewed or reported on by the Group's independent external auditor.”
Category
Trading Statement
Event posture
Bearish Continuation
Published
Jun 12, 2026

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