Harare – Seed Co Limited’s spin off, Seed Co International Limited says in spite of the growth in turnover in Zambia and Malawi driven by improved wheat seed sales and early maize seed exports to Mozambique respectively; revenue for the half year ended September 30, 2018 decreased by 7 percent to $17.7m compared to 19 million the prior year.

The dearth in revenue is attributed to a late availability of maize seed in Tanzania and Kenya as last year’s seed production from growers was negatively affected by high moisture content.

Following its spin-off in 2018, Seed Co International, a pan African focused seed company, with operations spanning across Africa, went on to primarily list on the Botswana Stock Exchange and secondary listed on the Zimbabwe Stock Exchange, with the parent SeedCo limited retaining a 26 percent stake in Seed Co International, followed by Vilmorin & Cie with 18,78 percent.

According to Seed Co Limited, the unbundling was meant to raise capital which was later directed towards satisfying regional market acquisitions and capex programmes in Tanzania, Nigeria, Zambia, Botswana and Kenya.

In the period under review, the Group posted improved results recording a loss of $1.5m compared to $3.3m in prior year impacted by exchange gains in Zambia and interest cost savings in Botswana.

The group recorded a slight increase in gross margins to 50 percent compared to 49 percent attributable to better pricing of wheat seed in Zambia as demand exceeded supply in that market.

The Group added that finance costs decreased from last year as the Group’s net debt position improved following receipt of the capital injection before listing.

In the period, the Group realised a $3.7 million decrease in property, plant and equipment from prior year largely resulted from the Kwacha depreciation on conversion of asset balances.

Going forward the Group said earnings is forecast to grow driven by the improved seed supplies in Tanzania and Kenya, adding that the partial return of the Farmers Input Support Programme (FISP) to tender in Zambia after the challenges encountered in the e-voucher programme introduced last year is also expected to boost the Group profit.

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