Despite challenges posed by COVID-19 restrictions, the company adequately stocked to meet anticipated demand in the ensuing season
Profits of seed manufacturer Seed Co (Pty) Ltd, which is listed on Botswana Stock Exchange (BSE), have significantly increased from $3,778,234 ( P44.3 million) to $6,071,196 (P71.3 million) for the year ended 31 March 2020, the company’s financials show.
The increase is mainly due to strong product demand in all markets. This is the company that also evidenced an increase in revenues grew by 19 percent from $60,136,380 ( P706 million) in 2019 to $71,357,970 (P838 million) in the year that ended 31 March 2020. “ Revenue only increased by 19 percent due to a sharp depreciation of the Zambian Kwacha against the reporting currency,” the company said.
The seed manufacturer did well in maize sales volumes which increased by 37 percent due to a combination of normal to above normal rainfall in Tanzania, Malawi and some parts of Zambia together with improved maize commodity prices.
Seed Co also marginally decreased its net operating expenses by 1 percent because of a reduction in credit losses and a positive impact of local currencies’ depreciation in translation to the group’s US$ presentation currency.
The seed manufacturer’s financial results note that Seed Co is adequately stocked to meet anticipated demand in the ensuing season. “This is despite the challenges posed by COVID-19 restrictions,” the company said. “ Fortunately, in all markets, agriculture has been designated as an essential and critical area and operations have been allowed to continue with limited interruptions,” said the company.
Seed Co further noted that it will continue to implement measures to ensure business continuity amid the challenges being brought by COVID-19 whose full effects on the business will be felt in the new financial year. “The group is expected to remain on a growth trajectory with adequate stocks and competitive product performance in all markets,” it said.
Seed Co International Limited is a company incorporated and domiciled in Botswana and listed on the BSE and the Zimbabwe Stock Exchange. The company has subsidiaries in Botswana, the DRC, Ghana, Kenya, Malawi, Nigeria, Rwanda, South Africa, Tanzania and Zambia. Operations in Angola, Ethiopia, Mozambique while parts of West Africa are at developmental stages.