- Delayed government payments of US$8.6 million have forced Seed Co to rely on loans
- Borrowings increased by 36% to US$29.6 million
- New medium maize seed varieties (SC661 and SC657) and a high-yielding wheat variety (SC W9104) were introduced
- Revenue increased by 73% to US$18.9 million, driven by an uptick with in volumes
Harare-The largest seed house in the country, Seed Co is currently struggling with financial challenges attributed to delayed payments from the government, which owes the company US$8.6 million.
This outstanding debt forced Seed Co to rely on borrowings to sustain its operations and make its cash flow remain afloat.
During the half year to full year 2025 that ended 30 September 2024 , the company’s borrowings increased by 36% to US$29.6 million from US$21.8 million in the comparative period last year.
As of 28 October, government owed over US$300 million to seed houses including Valley Seeds, FSG, ZFC, Windmill , Quton and Seed Co it's self, for the 2020-2021 season, 2021-2022 season, 2022-2023 season, and to date delaying shipment and distribution of Pvumvudza farming.
Seed Co produces premium maize seeds from early to late maturity seeds with the premium SC727 boasting closer to 20 tonnes per hectare under optimal rainfall conditions and reliable input supply's.
To cope up with changing climatic conditions ,the company introduced new medium maize seed varieties SC661 and SC 657 and a high yielding wheat variety, SC W9104.
In terms of performance during the half year, revenue increased by 73% reaching $18.9 million from $10.9 million in the preceding year while sales volumes were up 9%.
This growth was primarily driven by an uptick in winter cereal sales and exports, which contributed to an overall 24% volume increase to 10,625 metric tons.
The decrease on the operating expenses was a result of other income going down to US$0.1 million from US$1.4 in the comparative period.
Despite the challenges faced, Seed Co's commitment to research and development remains a key advantage.
These initiatives aim to create a strong product pipeline that can adapt to the constantly changing climate, positioning the company favourably for future growth.
Looking ahead, ‘’ The business maintains a cautiously optimistic outlook on economic prospects in Zimbabwe and the broader region, acknowledging persistent challenges across several markets while recognising the potential benefits of recent fiscal and monetary policy measures aimed at fostering economic stability and growth’’,the group said.
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