The normal to above normal rainfall forecast across southern Africa and the drive to ensure food security amidst the COVID-19 pandemic mean Seed Co can look to a ‘cornucopia’ ahead
Seed Co International’s (SCIL) profit before tax for the half-year which ended 30 September 2020 will reach approximately 275 percent to 295 percent (between $4.5 million and $4.8 million), the company announced in its trading update published on the Botswana Stock Exchange (BSE) recently.
The BSE compels issuers to announce through the bourse and the press if the variation between its expected profit or loss before tax and the previous corresponding period exceeds 10 percent, which is the case with Seed Co in this instance. That is because the company recorded a loss before tax amounting to $1.6 million for the six month period that ended 30 September 2019.
“The group reminds its valued stakeholders that the group’s operations are highly seasonal with the first half of the financial year largely being a cost accumulation phase,” the company stated in the trading update. “Meaningful sales activity usually only takes place during the rain season, which is the second half of our fiscal year.”
According to Seed Co, the outlook on seed demand in the region for the remainder of the reporting period is promising due to the normal to above normal rainfall forecast and the drive to ensure food security amidst the COVID-19 pandemic.
Seed Co is the leading certified seed company authorized to market seed varieties developed by itself, government and other associated seed breeders in over 15 African countries. The company has a branch in Botswana (Seed Co Botswana). Over the years, Seed Co has maintained a strong market share among communal and commercial farmers from intensive investment in Research & Development.
The company is involved in the breeding, multiplication and distribution of mainly hybrid seed varieties for maize, wheat, soya beans, sugar beans, cowpeas, sorghum, groundnuts and vegetables.