Online Reporter
Nelson Gahadza
Senior Business Reporter
SEED CO Limited recorded a stronger trading performance in the first quarter ended June 30, 2026, as revenue rose 19 percent and seed volumes increased 22 percent, buoyed by a rebound in winter cereal seed demand and early maize export sales.
In a trading update for the period, the regional seed producer reported revenue of US$6,9 million for the quarter, up from US$5,8 million recorded in the corresponding period last year, while volumes sold increased to 4 145 tonnes from 3 393 tonnes.
Although the company remained in a seasonal loss position during the quarter, its operating loss narrowed by 35 percent to US$2 million, compared with US$3,1 million in the first quarter of the previous financial year, reflecting stronger sales and prudent cost management.
Seed Co said the improved year-on-year performance was largely driven by stronger demand for winter cereal seed and early maize export volumes, which lifted both revenue and sales.
“During the quarter under review, the company continued to align its operations with the prevailing market environment, reinforcing cost discipline and credit risk management while advancing the development of the retail channel,” the company said.
The company noted that efforts to strengthen credit controls and improve the retail distribution network remained central to its strategy of enhancing cash collections and expanding market reach.
For the quarter under review, the company said it operated in a relatively stable macroeconomic environment, supported by exchange rate stability, easing inflation and continued monetary discipline.
However, it said the gains from the improving domestic economy were partially offset by escalating input and distribution costs arising from persistent geopolitical tensions in the Middle East and Eastern Europe.
According to the company, the conflicts continued to disrupt global logistics and exert upward pressure on energy, chemical and fertiliser prices, increasing production and distribution costs across the agricultural value chain.
Looking ahead, Seed Co said preparations for the 2026/27 main selling season were now under way, with management prioritising cash generation and disciplined working capital management in line with the seasonal nature of the seed business.
The company said it would continue focusing on operational efficiency, prudent financial management and strengthening its retail footprint to support sustainable growth, as demand for certified seed is expected to improve ahead of the summer cropping season.
