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Seed producer, SeedCo Limited says it is geared up for the upcoming sales season both locally and within the broader region with production and processing plans in place for a mixture of seed stock varieties to cater to preliminary El Nino forecast scenarios.
In a trading update for the first quarter ended June 30, 2023, SeedCo said in the period under review, total seed sales volumes experienced a 10 percent growth compared to the same period in the previous year.
“Sales of wheat constituted 85 percent of the overall volume, a pattern consistent with the period under review. The volume growth was primarily propelled by a seven percent and 19 percent surge in the sales of wheat and barley seeds, respectively.
“These increases are attributable to enhanced dam water levels and improved electricity availability for irrigation purposes,” reads part of the update.
Seed Co noted that the initial quarter usually serves as a phase of cost accumulation in anticipation of the primary crop, maize, and seed sales season in the latter part of the fiscal year.
Revenue for the quarter grew by 648 percent and 305 percent when compared to the same period in the prior year in historical and inflation-adjusted terms, respectively.
In contrast to the prior year, the operating profit showed a positive swing of 10 times and 19 times when compared to the previous period’s inflation-adjusted loss and historical profit, respectively.
It noted that the improved profitability outturn is attributed to the recovery of profit margins and the alignment of the exchange rate with open market forces.
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