HomeBusinessSeedCo forecasts US$4,8 million profit

SeedCo forecasts US$4,8 million profit

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BY FIDELITY MHLANGA

PAN-African seed producer, SeedCo International Limited (SCIL) group has projected a profit before tax of US$4,8 million for the period ended September 30, 2020 from a loss after tax of US$1,6 million during the same period last year, buoyed by early maize seed sales.

In a trading update, SeedCo company secretary Terrence Chimanya said the group’s operations were highly seasonal with the first half of the financial year largely being a cost accumulation phase.

He said meaningful sales usually takes place during the rainy season, which is the second half of the fiscal year.

“The board of the SeedCo International Limited (SCIL) group, therefore, hereby announces that the group’s interim profit before tax for the half year ended September 30 2020 will be approximately 275% to 295% between US$4,5 million and US$4,8 million better than the loss before tax amounting to US$1,6 million for the period ended 30 September 2019 mainly due to early maize seed sales,” Chimanya said.

He highlighted that the outlook on seed demand in the region for the remainder of the reporting period was promising due to the normal to above normal rainfall forecast and the drive to ensure food security amid the COVID -19 pandemic. The group’s interim results for the period ended 30 September are expected to be published on or before December 31, 2020. According to a circular released last week, SeedCo is to assume control of its Zimbabwe-based unit, SeedCo Limited, in a deal estimated at $5,1 billion.

SeedCo delisted from the Zimbabwe Stock Exchange (ZSE) on October 23, after authorities directed three firms with fungible stocks to leave the bourse. The three, including Old Mutual and cement producer PPC, were offered an option to list on the newly established forex-denominated Victoria Falls Stock Exchange (VFEX). SeedCo said by listing on the VFEX, it would only be allowed to raise capital for local operations. It said directors had seen it fit to take over the local operation and list it on VFEX to raise foreign currency for domestic operations.
The local unit will then delist from the ZSE.

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