Seed Co International Limited’s loss widened to US$2.5 million during the half year ended 30 September 2019 due to the decrease in exchange gains and increased finance costs.
The Group recorded a loss of US$1.5 million in the same period last year.
Seed Co International Limited, a spin-off of Seed Co Limited since 2018, is incorporated and domiciled in Botswana and listed on the Botswana Stock Exchange with a secondary listing on the Zimbabwe Stock Exchange.
The Group has subsidiaries located in Botswana, Ghana, Kenya, Malawi, Nigeria, Rwanda, South Africa, Tanzania, and Zambia.
The Group’s revenue for the period under review remained unchanged at US$17.7 million compared to the same period last year as the increase in maize seed sales volumes in Malawi, Tanzania and Zambia were neutralised by unfavourable currency movements and the delayed start to the planting season in Kenya due to late arrival of rains.
In a statement, Group CEO Morgan Nzwere said management is forecasting strong growth in full year earnings from prior year.
He said this will be driven by likely increase in revenue following recovery of demand in Kenya and Tanzania with normal to above normal rainfall forecast after the drought experienced in that region in the last financial year, anticipated improvement in margins and planned operating cost control initiatives.
The Group’s non-core income declined to $1.3m on account of reduced exchange gains on foreign-currency denominated receivables in Zambia as the Zambia Kwacha’s rate of depreciation decelerated.
Operating expenses were marginally higher at US$11.6 million compared to US$11.5 million last year but well within the regional inflation range due to cost containment efforts by management.
“Fixed assets increased to $39.2m resulting from capital expenditure partially offset by depreciation and exchange adjustments,” Nzwere said.
“The bulk of the capital investment went towards the purchase of a farm for seed production in Mkushi in Zambia.”
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.