Farai Mabeza, Senior Staff Writer 
SEEDCO International (SCIL) says revenue grew by 26 percent to US$88,5 million during the year ended March 31, 2021, driven by good rains received across its markets.
The company, which is dually listed on the Botswana Stock Exchange and the Victoria Falls Stock Exchange (VFEX), has subsidiaries across the region reaching as far as Democratic Republic of Congo, Ghana and Kenya.
“The group’s selling season witnessed above average rainfall across most countries which drove seed demand together with firm maize commodity prices and stakeholders’ support towards food security in the wake of the pandemic,” the company said last week in a statement accompanying its results.
The seed producer reported a US$5 million increase in profit for the period to US$11,1 million.
“The group’s profit performance improved markedly spurred by robust revenue growth and interest cost savings,” it said.
Meanwhile, the group was spared the worst effects of the Covid-19 pandemic due to its essential business status as an agricultural entity in its multiple jurisdictions.
Overheads, however, rose because of distribution costs linked to the growing sales.
“The group’s much improved cash generation resulted in a reduction in borrowings and associated finance costs, while receivables grew on account of increased sales, though at a much slower rate due to impressive collections, from US$52 million to US$58,3 million.
The company expects food security to remain high on the agenda as long as the Covid-19 pandemic endures.
“However, the regional bumper harvest expected from the ongoing harvest season may weaken maize grain prices though the potential impact on next season’s seed demand is unknown,” it said. SeedCo recently attempted to merge with its parent company, SeedCo Zimbabwe.
The deal, that would have seen the VFEX-listed SeedCo acquiring the entire share capital of the Zimbabwe Stock Exchange-listed unit, was abandoned after it failed to get the nod from the Reserve Bank of Zimbabwe’s Exchange Control Division. Meanwhile, group chief executive, Morgan Nzwere, said SeedCo would look to ride on its performance which he described as “phenomenal” going into the next season subject to favourable climatic conditions.
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