SEED Co International Limited (SCIL), the foreign currency-earning subsidiary of the Seed Co Group, slashed its interim loss by nearly 93% to US$200 000 for the half-year ended September 30, 2025, driven by strict cost controls, improved financing and strengthened credit-risk management.
In the comparative period last year, the company had posted a loss of US$2,8 million.
SCIL is one of two subsidiaries under the Seed Co Group responsible for foreign operations, while local operations are conducted through Seed Co Limited (SCL)
“The group registered near break-even interim result of US$0,2 million net loss compared to a US$2,8 million loss in the prior year, anchored on brand equity, cost efficiencies, financing and credit risk management,” SCIL said in a statement attached to its half-year report for the period ended September 30, 2025.
“Revenue rose by 15% from maize and wheat, strong performance as well as value-tracking pricing.”
Revenue for the period under review was US$46 million, up from US$40 million in the same period last year.
“Overheads declined by 9% driven by operational excellence and enhanced risk governance in areas of financing and credit extension,” SCIL said.
“Other losses driven by FX (forex) pressures, largely from Malawi, and monetary loss from hyperinflationary effects. Net finance costs declined significantly on the back of better cash generation and early retirement of interest-bearing loans.”
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By contrast, Seed Co Limited (SCL) posted an interim loss of US$5,73 million for the half-year to September 30, 2025, compared to a profit after tax of US$1,21 million in the prior year.
SCL’s revenue fell 39% year-on-year to US$11,6 million, mainly due to seasonal trading patterns, timing differences in the agricultural cycle, reduced exports after regional supplies recovered and a smaller winter wheat season.
“Trade receivables increased by 6% compared to 15% revenue growth on the back of collections and growing cash sales contribution. Inventory rose seasonally by 45%, driven by scaled-up production to satisfy anticipated regional demand this financial year,” SCIL said.
“Shareholders’ equity contracted due to the higher dividend payout ratio out of FY25 profits and translation losses. Debt increase reflects funding for seasonal working capital needs tied to seed deliveries and processing on the back of scaled-up production.”
SCIL also reported a stronger balance sheet, with total assets of US$169,1 million as of September, compared to US$155,9 million in March.
For SCL, total assets declined to US$161,63 million from US$172,03 million, mainly due to a 15,1% reduction in trade and other receivables.
“Current 2025/26 seasonal outlooks project normal to above-normal rainfall across much of the Southern African region, while below-normal rainfall is anticipated in several parts of East Africa. The group remains alert to these divergent climatic scenarios, leveraging its broad and adaptive product portfolio to ensure the availability of seed varieties suited to evolving rainfall patterns across its key markets,” SCIL said.
“Notwithstanding these climatic prospects, the operating environment remains complex, marked by persistent currency volatility, inflationary pressures, shifting policy frameworks, and intermittent political instability, all of which continue to test regional resilience and operational agility.”
In the outlook, the group remains well-positioned to navigate these dynamics through its diversified product portfolio, which features climate-smart hybrids tailored to Africa’s diverse agro-ecological zones.
“By leveraging its strong value proposition to smallholder farmers and deepening regional integration, the group remains confident in its ability to sustain growth, drive operational excellence, and deliver enhanced value to shareholders,” SCIL said.
