Online Reporter
Nelson Gahadza, [email protected]
SEED Co International Limited more than doubled its profit in the year ended March 31, 2026, overcoming drought-related disruptions in several key African markets through stronger pricing, an improved product mix and disciplined cost management.
The regional seed producer reported profit after tax of US$13,1 million, a 130 percent increase from US$5,7 million recorded in the previous financial year. Revenue rose by 30 percent to US$161,3 million, supported by sustained demand for the company’s premium climate-smart seed varieties across its operating markets.
The strong performance was also reflected in profitability margins, with gross profit increasing by 53 percent to US$85,1 million.
Gross profit margin improved from 50 percent to 53 percent, driven by a favourable product mix, effective pricing strategies and improved operational efficiencies across the business.
In its commentary accompanying the audited financial results, Seed Co International said it had successfully navigated challenging trading conditions in key markets such as Kenya, Nigeria and Ethiopia through disciplined execution of its business strategy and enhanced value-capture initiatives.
“The business continued to leverage its strong brand equity, expanded premium climate-smart seed portfolio and deepened customer engagement across core markets,” the company said.
The group noted that while foreign exchange volatility and inflationary pressures continued to affect some markets, improved cash generation and lower finance costs helped support earnings growth during the period.
Net finance costs declined significantly as a result of improved working capital management and deliberate efforts to reduce debt levels.
Seed Co International also strengthened its balance sheet over the period. Shareholders’ equity increased from US$93,8 million to US$123,5 million, while the debt-to-equity ratio improved from 34 percent to 21 percent.
The company said the long-term outlook for African agriculture remained positive, underpinned by growing investment in food security programmes and increased demand for improved seed varieties.
However, it cautioned that challenges such as adverse weather conditions, inflation and currency volatility remain risks within the operating environment.
According to FBC Securities, the results highlight the resilience of Seed Co International’s business model and its ability to deliver growth despite difficult trading conditions in several African markets.
The brokerage firm said revenue growth was largely driven by stronger pricing and rising demand for premium products, while the improvement in gross margins reflected effective product mix management and operational efficiencies.
However, FBC Securities warned that exchange rate volatility, inflationary pressures and weather-related risks continue to pose challenges that could affect agricultural production and industry performance.
The brokerage also noted that the group’s continued investment in strategic projects, research and development positions it to benefit from increasing demand for climate-resilient seed varieties across the continent.
“The group retains a resilient balance sheet, disciplined risk governance and strong shareholder value creation focus, supported by premium product offerings and improved cash generation,” the brokerage said.
FBC Securities believes Seed Co International remains well positioned to capitalise on long-term growth opportunities arising from increased agricultural investment and food security initiatives across Africa, although macroeconomic uncertainties are expected to remain a feature of its operating environment.
