- Seed sales were up 57% in the quarter
- Revenue for the quarter climbed 51%
- Gains attributable to improved rainfall and increased government spending
HARARE – Zimbabwe’s biggest seed producer and distributor Seed Co Limited has recorded a 57% jump in seed sales volumes for the third quarter ended 31 December 2020 (Q3 2021) attributable to better rainfall and increased purchases by the government.
In a trading update for the period under review, the agro-company also noted that for the nine months to 31 December 2020 average sales volumes increased by 42% overturning the 24% slump experienced in sales in the corresponding period last year which was characterized by poorer rainfall receipt.
“Coming off last financial year’s low base, sales volumes increased by 42% for the full period and by 57% for the quarter mainly attributable to better rainfall forecasts and the continuation of government input programs on an increased scale,” the company reported.
The government of Zimbabwe under its ‘Pfumvudza’ program which is drought resistant method of farming has been giving maize seed and fertilizers to farmers which has greatly improved Seed Co’s sales volumes.
Following the announcement by the meteorological department early in 2020 that the country would be receiving normal to above normal levels of rainfall during the rainy season, Seed Co saw volume growths of maize seed and wheat jump 59% and 20% respectively in the nine-month period to 31 December 2020 against the comparative period in 2019.
The company says sales in the third quarter also benefitted from the partially relaxed lockdown which the country went under in the period.
“The country was under a partially relaxed lockdown during the quarter under review which had a positive effect on the movement of customers buying seed from the Company’s distribution network nationwide during its peak selling season,” Seed Co stated.
In addition, the company said the stability of the local currency against the USD and the slump in inflation witnessed from July 2020 had positive effects on the ease of pricing.
Resultantly, the company saw a 49% revenue growth for the nine months and 51% for the third quarter.
Meanwhile, over three-quarters of Seed Co Limited shareholders have accepted an offer for shares from sister company, Seed Co International Limited (SCIL) that will see the seed producer terminating its 25-year long dalliance with the Zimbabwe Stock Exchange (ZSE).
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