Online Reporter
Nelson Gahadza
Senior Business Reporter
SEED Co International Limited posted a 130 percent surge in profit after successfully offsetting drought-induced disruptions in its key African markets through stronger pricing, an improved product mix and disciplined cost management.
The regional seed producer reported profit after tax of US$13,1 million for the year ended March 31, 2026, up from US$5,7 million in the prior year, as revenue rose 30 percent to US$161,3 million, driven by sustained demand for its premium climate-smart seed varieties.
Gross profit climbed 53 percent to US$85,1 million, while the gross profit margin improved sharply from 50 percent to 53 percent, reflecting a favourable product mix, disciplined pricing and operational efficiencies across the value chain.
In its commentary accompanying the audited results, the group said it navigated difficult operating conditions in Kenya, Nigeria and Ethiopia through disciplined commercial execution and enhanced value capture initiatives.
“The business continued to leverage its strong brand equity, expanded premium climate-smart seed portfolio and deepened customer engagement across core markets,” the company said.
The group noted that while foreign exchange volatility in selected markets and inflationary pressures weighed on earnings, lower finance costs and stronger cash generation supported profitability.
Net finance costs declined significantly following improved working capital management and deliberate debt reduction.
Seed Co International also strengthened its balance sheet during the year, with shareholders’ equity increasing to US$123,5 million from US$93,8 million, while the debt-to-equity ratio improved to 34 percent from 21 percent.
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