• Seed Co International narrowed its half-year loss by 93%, posting a near break-even result of US$0.2 million
• Revenue increased 15% to US$46 million, while operating profit more than doubled to US$2.4 million
• With normal to above-normal rainfall projected across Southern Africa and the region entering its peak planting season, the Group expects stronger H2 performance, improved cash generation, and potential full-year profitability

Harare- Seed Co International Limited (SCIL) has delivered its strongest interim performance in years after narrowing its loss for the six months to 30 September 2025 to  US$0.2 million, an improvement  from the US$2.8 million loss recorded in the same period last year.

The near break-even result was driven by strong maize and wheat demand across the group’s regional markets, decisive cost containment, and improved financing efficiencies, helping Africa’s largest seed producer navigate one of the most volatile operating environments on the continent.

‘’ The Group registered near break-even interim result of $0.2M net loss compared to a $2.8M loss in the prior year, anchored on brand equity, cost efficiencies, financing and credit risk management,’’ the company said.

The group’s topline strengthened considerably during the period, with revenue rising 15% to US$46 million from US$40 million in 2024. The growth was underpinned by strong commercial seed uptake particularly maize and wheat combined with value-tracking pricing strategies that protected margins in high-inflation markets.

Operational efficiency played a central role in the turnaround,  Seed Co International managed to cut overheads by 9%, a reduction attributed to enhanced risk governance, stricter cost control, and improvements in credit extension practices.

This translated into a significantly stronger operating profit of US$2.4 million, up from US$1 million in the comparable period.

However, the group still recorded US$2.9 million in other losses, primarily driven by foreign exchange pressures emanating from Malawi and monetary losses linked to hyperinflation in certain markets.

A further boost came from reductions in finance charges. Net finance costs dropped to US$1.6 million, compared with US$2.4 million last year, owing to stronger internal cash generation and the early repayment of interest-bearing loans.

The group’s vegetable seed joint venture recorded only marginal losses, while losses from joint ventures and associates were significantly lower than the previous year after the once-off dilution loss recorded in 2024.

Borrowings rose to US$39.3 million, compared with US$31.5 million at year-end, as the group secured additional working capital to support seed processing and deliveries following intensified production.

Looking ahead, the group  remains optimistic as it enters the second half of the financial year  traditionally its strongest trading period  when peak rainfall, heightened seed demand, and intensified farming activity typically translate into higher sales and improved cash generation. With the onset of the regional planting season, the Group anticipates a firmer revenue performance that could see it break even or exceed prior-year profitability, supported by strengthened market access and growing uptake of certified seed across its footprint.

The company’s outlook is further buoyed by this season’s rainfall projections. Meteorological forecasts for the 2025/26 season indicate normal to above-normal rainfall across much of Southern Africa, a pattern expected to stimulate demand for maize, wheat and other hybrid varieties as farmers expand hectarage under favourable moisture conditions.

This is particularly positive for key markets such as Zambia, Zimbabwe, Malawi, Botswana and parts of Mozambique, where improved rainfall typically drives higher seed purchases and more predictable production cycles.

Conversely, several countries in East Africa are expected to experience below-normal rainfall, potentially constraining agricultural activity in those territories.

However, the Group’s extensive footprint, coupled with its ability to rapidly shift product allocations between regions, enables it to cushion the impact of these divergences.

Equity Axis News