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LISTED seed producer SeedCo narrowed its loss after tax to $5.5 million in the six months to September 30, 2015 from $7.6 million in the prior comparable period. This was on the back of a rise in volumes, reduced finance charges and exchange rate gains, said the group, which has operations in Botswana, Kenya, Malawi, Tanzania and Zambia.
Revenue for the period amounted to $18.7 million up from $16 million, with at least 9 percent of the revenue coming from the newly acquired division, Prime Seeds. Cost of sales jumped 33 percent to $10.5 million, which management attributed to higher insurance and depreciation charges.
And operating expenses rose 25.8 percent to $15.7 million due to the addition of Prime Seeds. Finance income increased to $877,844 from $68,398 while finance costs came down to $1.2 million from $2 million in the prior year, a development that resulted in loss before tax falling to $5.3 million from $6.2 million last year.
During the period under review, current bank borrowings nearly doubled from $11.7 million to $20.6 million while operating costs increased by 25 percent to $15.6 million. Going forward, the group says it expects incremental positive outturn.
“Positive prospects in the medium to long-term are expected to come from: quicker product release due to the strategic technical equity partnership with Limagrain; the acquisition of Zimbabwe’s leading vegetable seed distribution company and leveraging on the expertise of Limagrain in this new line of business in all our markets, increasing market share in East Africa with Kenya, Tanzania and DRC all continuing on an impressive growth projectile; new proprietary product releases in the West African market which are showing promise . . .,” said the company in a statement accompanying the results.
The board did not declare a dividend for the half-year, in line with group policy. — BH24.
Online Reporter