Seed Co topline more than doubled in HY2023
LIVINGSTONE MARUFU
Zimbabwe’s largest seed producer, Seed Co Limited’s topline rose to ZWL$59.71bn in the six months to September 30, 2023 from ZWL$29.69bn reported in the prior comparative period.
On the other hand, volumes decreased by 3% during the reviewed period.
Profit for the group jumped 851% to ZWL$87.30bn in the reviewed period from ZWL$9.18bn due to increased revenue and cost containment measures.
John Matorofa, finance director of Seed Co., stated during a briefing for analysts yesterday that the company’s prompt pricing made up for the decline in volume.
“Value tracking price adjustments on the backdrop of inflationary pressures and comparative exchange rate distortions resulted in inflation-adjusted turnover being 101% higher than prior year while volumes decreased by 3% from the previous year,” Matorofa said.
“Government related input support initiatives for the summer selling season started slowly while finance costs declined 29% from previous year. The regional associate, Seed CoInternational, registered an encouraging start in terms of volume and turnover and this resulted in a reduced first half loss compared to prior year.”
According to him, operating expenses rose 135% in inflation-adjusted terms as costs followed changes in exchange rates, but the average interest rate on borrowing in Zimbabwean dollars was 95%, down from 113% during the same period last year.
According to him, the El Nino-induced drought that was predicted for this cropping season caused maize sales to start slower than expected. However, despite difficulties faced by farmers during the winter cropping season, Zimbabwe sold 5,962 metric tonnes (mt) of wheat, 6% more than the previous year.
Despite strong results, Seed CEO Morgan Nzwere stated that the company is still affected by uncertainty surrounding interest rates, currency rates, dollarization mixed signals, and governmental policies.
