• Seed Co International expects shareholder earnings to surge by 120%–140% for FY2026, signalling a strong profitability rebound.
• The projected increase reflects improved margins, volume recovery, and stronger performance across key African markets.
• The earnings upswing follows a constrained FY2025 impacted by El Niño, currency volatility, and supply challenges, with recovery now gaining momentum.

Harare - Seed Co International Limited, a pan-African seed producer listed on the Victoria Falls Stock Exchange (VFEX) with a primary listing on the Botswana Stock Exchange (BSE), is projecting a sharp recovery in shareholder returns for the financial year ended 31 March 2026, underpinned by improved profitability and stronger performance across its operating markets.

In its latest trading update, the Group indicated that basic earnings per share (EPS), a key measure of profit attributable to each ordinary share is expected to increase by approximately 120% to 140% compared to the prior year.

This would place EPS in the range of 3.00 to 3.30 US cents, representing a significant jump from the 1.38 US cents recorded in FY2025. The Board noted that the anticipated growth reflects enhanced profitability across the Group’s markets, signalling a broad-based recovery rather than a once-off gain.

Such a sharp rise in basic EPS points to more than just revenue growth. It suggests that the Group is benefiting from improved margins, stronger cost discipline, and better operational efficiency, all of which translate into higher earnings attributable to shareholders on a per-share basis. Because EPS captures the portion of profit allocated to each share, it is one of the clearest indicators of value creation for investors. A doubling of EPS typically reflects a combination of volume recovery, pricing strength, and improved cost absorption, and in Seed Co’s case, it likely marks a rebound from prior constraints alongside genuine operational gains.

Founded in Botswana on 7 July 2000, Seed Co International has established itself as one of Africa’s leading certified seed companies, specialising in the breeding, multiplication, and distribution of hybrid and open-pollinated seed varieties.

Its portfolio spans key crops such as maize, wheat, soya beans, sorghum, sugar beans, rice, potatoes, cotton, and vegetables. The Group’s products are tailored to Africa’s diverse agro-ecological zones, with a strong emphasis on climate-smart agriculture, enabling farmers to sustain yields despite increasingly erratic rainfall patterns and climate variability.

The company operates directly in several key markets, including Angola, Botswana, the Democratic Republic of Congo, Ethiopia, Kenya, Malawi, Mozambique, Nigeria, Tanzania, Rwanda, Uganda, Zambia, and Zimbabwe, while maintaining a broader footprint across more than 35 African countries through partnerships and joint ventures, including collaborations with global seed group Limagrain. Its 85-year brand heritage, rooted in the broader Seed Co Group, continues to underpin its reputation for quality and innovation in seed development.

The expected rebound in FY2026 follows a relatively constrained performance in FY2025, when the Group reported revenue of US$124.3 million, reflecting a modest 5% increase despite a 7% decline in sales volumes. That decline was largely attributed to erratic rainfall patterns linked to El Niño conditions, product shortages in certain markets, and broader macroeconomic pressures, including currency volatility, inflation, and geopolitical uncertainties.

Despite these headwinds, profit after tax rose by 15% to US$5.7 million, supported by an improvement in gross margins from 47% to 50%, highlighting the strength of the company’s brand and its ability to maintain pricing power.

Momentum appears to have strengthened into the current financial year, with interim results for the first half of FY2026 showing revenue growth of 15% to US$46.0 million. The full-year earnings guidance now points to a more pronounced profitability inflection, likely supported by improved weather conditions, including a transition toward La Niña patterns in some regions, which typically favour agricultural output. This, combined with a recovery in volumes, operational efficiencies, and continued market expansion, is expected to drive stronger financial performance.

The Group’s continued penetration into both established and emerging markets, alongside improvements in supply chains and distribution networks, is likely contributing to enhanced revenue quality and earnings resilience.

These factors position Seed Co International to better capture demand across the continent, particularly as food security and agricultural productivity remain central to economic policy in many African countries.

With its dual listing on the BSE and VFEX, Seed Co International offers investors exposure to Africa’s agricultural growth story. The anticipated surge in EPS reinforces the company’s earnings leverage to both improved climatic conditions and internal operational execution. If sustained, this level of growth could support a stronger market valuation, as consistent gains in per-share profitability are typically rewarded by investors, particularly in sectors with long-term structural demand such as agriculture.

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