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Sifelani Tsiko Agric, Environment & Innovations Editor
SeedCo International Limited (SCIL), a leading African seed producer, full-year revenue increased by 14% to US$103,5m from US$88,5m recorded last year consolidating its dominant position and showing resilience to currency and inflationary pressures.
According to its March 2022 to March 2023 full-year results, Seed Co International after-tax profits declined to US$2,9 million from US$7,1 million in the previous period due to pressure from imported global inflation and exchange losses as regional currencies weakened to the US dollar.
“Turnover and volume growth registered this year confirms the strength of the group’s market standing and brand equity amidst global and regional challenges,” the company said.
“Global supply shocks and imported inflation remain elevated, further compounding the effects of climate change in Africa. The group however remains optimistic about the prioritization of primary food production in Africa to mitigate global shocks.”
To ensure its survival, the group said it was restructuring both its business model and balance sheet to respond to the rising cost of doing business and to hedge against weakening currencies.
Seed Co International’s revenue increased buoyed by good volume performance in East Africa as well as Zambia.
“Gross margin was flat and faced pressure from imported global inflation that could not be passed on in pricing to our small-scale farmers,” the company said.
“Other income reversed significantly into negative, driven by exchange losses as regional currencies weakened against the USD. Overheads increased in line with business growth in East Africa and in response to global inflation developments.”
Seed Co International has been expanding on the continent and controls more than half the maize seed market in Malawi and Zambia, 40 percent of the Tanzanian market. It is also testing new maize varieties for sale in Ethiopia and West Africa.
The raging Russian – Ukraine conflict has caused global market volatility which has also affected SCIL’s performance.
Online Reporter