Chronicle Editor
Nelson Gahadza, Harare Bureau
SEED CO International Limited (SCIL) sales volumes for the half year to 30 September 2021 were 13 percent ahead of prior year driven by early and sales growth in Malawi and Tanzania as well as increased demand in Mozambique.
John Matorofa, the group’s finance director, briefing analysts yesterday said Seed Co was promoting on-line shops across its markets to add convenience and keep abreast with market developments.
He said revenue for the period jumped to $35,6 million from $$27,9 million driven by better season preparedness, early sales activity in Malawi, Tanzania and Zambia as well as translation gains mainly in Zambia following appreciation of the Kwacha.
SCIL listed on the Botswana Stock Exchange in 2018 and in 2020 became the first to list on the new United States dollar-denominated Victoria Falls Stock Exchange.
SCIL was carved out of SeedCo Limited, which is listed on the Zimbabwe Stock Exchange (ZSE) and Seed Co Limited, a Zimbabwean domiciled company, is the second largest shareholder in Seed Co International at 27,3 percent.
According to Mr Matorofa, the group’s first half profit reduced to $1,5 million from $2,5 million despite growth in revenue due to fall in other income because of non-recurring disposals, increase in operating costs owing to early selling season preparedness this year and the strengthening Zambian kwacha.
He said the Southern African Customs Union region (SACU) no longer includes South Africa, eSwatini and Lesotho hence the fall in revenue by more than 50 percent in these markets.
Turnover in Zambia increased by 121 percent to $15,5 million mainly due to price adjustments and early season start while sales in Malawi more than doubled buoyed by early demand driven by the government inputs support program.
In Tanzania, sales increased 78 percent to $4,1 million driven by early demand. In Kenya sales declined 17 percent due to drought while in Nigeria turnover was down 42 percent due to stock unavailability following production challenges due to heavy rains last season.
“Maize seed dominated both revenue and volume contribution driven by strong demand in Malawi, Tanzania and Zambia,” Mr Matorofa said.
He added that soya seed sales increased compared to last year on account of better stocking and interest coming out of Mozambique. On other hand, other sales include wheat and bean sales in Zambia and Mozambique respectively.
During the period under review, Mr Matorofa said the group released five new maize hybrid varieties in Zambia that will also be released in other markets.
These are the SC449, SC547, SC553, SC555, SC735 and SC547.
“SC553 and SC555 now qualify to be entered in the SADC Catalogue while SC733 launched in Zambia to compliment and gradually replace SC701 as a green mealie variety,” he said, adding that the group is on advanced stages to release soybean variety SC Signal in Nigeria.
“We are also expecting to release three soybean varieties in Ethiopia next year based on ongoing trials and we are also continuing rice hybrid trials in Southern, East and West Africa.”
Mr Matorofa said the group had already started pilot commercial sales in Malawi, Tanzania, Nigeria and Zambia.
He said potato and cowpea hybrid registration trials are on-going and the group is working to introduce Canola Jazz in regional markets after pilot production in Zimbabwe. In terms of seed production, Mr Matorofa said product availability was somewhat affected by late season heavy rains last season in Southern Africa and Nigeria.
In Kenya, he said there are satisfactory stockholdings overall but some shortages could be experienced in some varieties, but current season production is planned.
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