Andrew
Online Reporter
DESPITE declining volumes due to adverse macroeconomic developments, Seed Co International managed to maintain a strong top-line, with revenue coming in unchanged at US$88,5 million for the year to March 31, 2022 from the prior comparable period.
During the year under review, the seed producer was affected by a myriad of challenges, including drought in parts of East Africa, with Kenya being affected the most; late rains in Southern Africa; a 50 percent subsidy contribution in Malawi and unanticipated appreciation of the Zambia kwacha.
The resultant gross margin shrinkage mainly in Zambia saw the group’s profitability weakening over the period, achieving an after-tax profit of US$7,1m, down from US$11,1m last year.
But revenue remained strong.
Said group financial director Mr John Matorofa: “Despite notable volume reduction, revenue was flat at US$88,5 million anchored by phenomenal revenue growth in Mozambique (which trebled to US$11,1m), albeit from lower margin legumes, local currency price adjustments and currency translation gains mainly out of Zambia.”
Online Reporter