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Brimstone Investment, the JSE-listed Western Cape investment holding company, reported headline earnings per share of 213.6 cents for the year ended December 31, up 98% from 108 cents a year earlier.
The near-doubling of earnings came as the black-controlled firm eliminated more than half a billion rand in debt and returned to profitability after a bruising 2024.
"Brimstone delivered a strong performance, with an attributable profit of R44 million, compared to a loss of R200.4 million in the prior year. This profit was driven primarily by the performance of associate company Sea Harvest," CEO Mustaq Brey said.
Sea Harvest did the heavy lifting. Brimstone held 159.6 million shares, representing a 44.2% stake in Sea Harvest, with a market value of R1.5 billion at year end. Sea Harvest's share price closed at R9.49 per share, up from R8.35 at December 31, 2024. Brimstone recognised R151.5 million as its share of Sea Harvest's profits for the year, up from R111.4 million the year before.
Brey pointed to Europe as the engine behind Sea Harvest's momentum. The cod season in the northern hemisphere has been poor, pushing demand for South African hake higher across European markets. Sea Harvest, which derives significant revenue from hake exports, caught the upswing at exactly the right time.
The debt story was just as significant. Net debt was reduced by R520.3 million during the year. Brimstone had set itself a three-year target of cutting R600 million in debt by the end of 2025. It got there ahead of schedule. In the last two years alone, more than R1 billion was repaid to funders. Brey said the group is comfortable with the remaining debt of about R1.2 billion.
Much of the firepower came from a deliberate exit from part of the Oceana position. Brimstone disposed of 11.95 million Oceana shares for a total cash consideration of R633.4 million, retaining 20.8 million shares, a 16% stake, with a market value of R1.2 billion at year end. Oceana's share price softened, closing at R55.74 from R67.48 a year earlier, and Brimstone's share of Oceana profits came in at R181 million against R299.6 million the prior year. Cash dividends from Oceana fell to R72.4 million from R162 million.
Beyond fishing, the portfolio held its ground. Brimstone's 18% stake in Aon Re Africa, the reinsurance broker operating across Sub-Saharan Africa, contributed R20.8 million to profits and generated a dividend of R20.2 million for the year.
The 10% stake in FPG Property Fund, a Cape-based black-owned unlisted property fund with 35 convenience shopping centres in South Africa and a growing footprint in the UK, was revalued upwards by R52 million to R492.4 million at year end. The broader FPG Investments structure, in which Brimstone also holds a stake, owns 87% of FPG Foods, which runs 71 franchised fast-food outlets in South Africa and the UK, and holds 30% of Polar Ice Cream, an ice cream manufacturer with more than 100 retail outlets.
Obsidian Health, Brimstone's subsidiary supplying healthcare solutions to both private and public sector clients across Sub-Saharan Africa, contributed R20 million to group profit, up from R13.8 million the prior year.
Brimstone has reduced total debt from roughly R4 billion to R1.2 billion over recent years. Brey said the group is now at a point where growth can re-enter the conversation. "When the right deal comes to us, yes, we will look at growth," he said.
The macro backdrop is not without risk. Brey flagged concern about the global geopolitical environment and its potential knock-on effects for South Africa, citing transport hub disruptions, rising fuel costs and inflationary pressure as near-term watch points. At the same time, he pointed to signs of easing inflation, recent interest rate cuts, structural reforms in energy and logistics, South Africa's exit from the FATF grey list and the sovereign credit rating upgrade as early markers of a more supportive environment.
On March 3, Brimstone declared a final gross cash dividend of 42 cents per share, up from 40 cents the year before. It is a modest increase, but for a company that spent the better part of three years deleveraging, it signals confidence that the hard work is largely done.
