SEED Co expects to reverse the $9 million before tax loss registered in the first half of the year to September 30 as demand for seed is expected to rise with the commencement of the agricultural season.
By Our Business Reporter
The seed manufacturing firm’s revenues in the interim period were down 56,3% to $13,2 million compared to $30,3 million during the same period the prior year.
Decline in revenues was attributed to the low demand in wheat sales coupled with the late onset of the governments’ seed programmes in Zimbabwe, Zambia and Malawi
“The government and donor-funded programmes in Zimbabwe, Zambia and Malawi were delayed this year with the programmes for the later two only being launched in mid October and sales staring in earnest in late October,” the company secretary, John Matorofa, said in a statement accompanying its interim results.
“The current assets at $110 million are slightly lower than the prior year-end figure reflecting current year intake of inventories and delayed sales off take and the slow movement of in government debtors. During the period under review, the company released four new seed varieties for the Zambian and Zimbabwean market.
Seed Co’s finance costs rose to $3,3 million, up from $1,4 million, a development the company said was as a result of the carryover borrowings used to finance stocks.
“The major debtors have been paying very slowly in Zimbabwe due to tight liquidity,” Seed Co said.
“This has also had an adverse effect on the prevailing interest rates on the market.”