- Profit after tax grew by 62%
- Revenue increased by 19%
- Sales volumes increased by 37%
Harare – Botswana domiciled seed company, Seed Co International registered a strong performance for the year ended 31 March 2020 compared to the prior year.
According to the group’s results publication, profit after tax for the year stood at US$6 million compared to US$4 million registered in 2018, representing a 62% growth.
The group said profitability was driven by the strong demand in all markets.
Meanwhile, improved maize commodity prices and a combination of normal to above normal rainfall in Tanzania, Malawi, and some parts of Zambia spurred sales volumes. Sales volumes grew by 37%.
The group also highlighted that revenue increased by 19% to US$71 million from US$60 million achieved in the prior year due to a sharp depreciation of the Zambian Kwacha against the reporting currency.
Net operating expenses marginally declined due to the reduction in credit losses and the positive impact of local currencies’ depreciation on translation to the groups US$ presentation currency.
The group also realised an increase in non-current assets as a result of the acquisition and capitalisation of the seed production farms in Zambia, and capitalisation of right use of assets as well as breeding rights.
In Kenya, both excessive rains in the first season and COVID-19 movement restrictions in the second season impeded on sales volumes, resulting in increased inventories at year end for the group.
Commenting on COVID-19 pandemic restrictions, the group said it is adequately stocked to meet anticipated demand in the ensuing season.
On the outlook, Seed Co said, “The Group will continue to implement measures to ensure business continuity amid the challenges being brought by COVID-19 whose full effects on the business will be felt in the new financial year.
Market development initiatives will continue in East Africa and the adjacent markets of Angola, DRC and Mozambique. The Group is expected to remain on a growth trajectory with adequate stocks and competitive product performance is all markets.”
Seed Co International is an offshoot of the Zimbabwe Stock Exchange (ZSE) listed Seed Co Limited.
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