Our opinion on the current state of ZEDER(ZED)Zeder (ZED) is PSG's listed, 43.7%-held investment holding company in agriculture. Zeder sold its 28.6% stake in Pioneer Foods (PFG) to PepsiCo for a sum-of-the-parts (SOTP) value of R10.7 billion, receiving about R6.41 billion. As a result, Zeder declared a special dividend of 230c. Zeder's largest investment now is its 98% stake in Capespan, which markets fruit both locally and overseas. This is followed by a 93% holding in Zaad, which specializes in seeds and seed production, and a 41% holding in Kaap Agri.
In September 2019, Zeder's CEO acquired 40% of East Africa Seeds (EAS) for Zeder subsidiary Zaad, and that holding has since been increased to 97%. The company has warned of rising food prices due to increasing fertilizer and fuel prices following the February 2022 invasion of Ukraine.
In its results for the six months to 31st August 2024, the company reported that its net asset value (NAV) had dropped by 17.9% to 215c per share, primarily due to the payment of ad-hoc special dividends of R0.40 per share. The company also made a headline loss of 4.1c, compared to a profit of 3.6c in the previous period. Zeder said, "After a sharp decline in the Agbiz Agribusinesses Confidence Index during Q2 2024, the index has subsequently recovered by 10 points to 48 points."
Zeder carries the exposure of agricultural enterprises to drought and other adverse weather conditions, but it is a well-managed company. At 194c, the share looks fairly valued against its NAV of 215c. While volatile, the share has been rising since April 2024.
