Maravi

(HERALD) Seed Co profit soars to US$19m

Seed Co profit soars to US$19m
Wednesday, 30 May 2012 00:00
Bright Madera Senior Business Reporter

SEED CO profit for the 12 months to March 31 climbed 10 percent to US$19 million on the back of growth in volumes. The leading breeder and distributor of hybrid seed turned over US$118 million, a 20 percent positive variance compared to the US$97 million generated last year.

Group finance director Mr John Matorofa said sales volumes for the group also went up 22 percent to 67 240 metric tonnes during the period under review with Zimbabwe sales volumes increasing 74 percent.

Malawi was the only market that registered minimal growth compared to all other countries in which Seed Co operates.
A robust production base and balanced seed stocks following two seasons of successful production helped the group to meet demand.
In total the group’s maize seed sales went up 25 percent as the group pursued to increase market coverage on the back of abundant stocks.
“With a very strong stockholding position, the group will take advantage of the increased demand in some markets, and improved production efficiencies. The production capacity in the new markets of Tanzania, Kenya and Ethiopia continues to grow,” said Mr Matorofa.

Total assets for the group grew 28 percent from US$123 million to US$157,4 million driven by a 39 percent growth in current assets as well as the group’s continued investment in property, plant and equipment.
Mr Matorofa said inventories for the group were up due to a 68 percent increase in maize production and the expected maize production for this coming season was reduced 64 percent in a bid to wind down the carry-over stock.

“Trade receivables increased 36 percent and allowances for credit losses amounting to US$2,3 million have been made on some doubtful and slow paying customers,” he said.

During the period under review, West African collaborative efforts with other organisations were initiated and the group is expected to benefit from these synergies.
In East Africa better performing varieties are at an advanced stage and this is expected to contribute significantly to group profitability.
Seed Co released an additional eight products on to the market, five of which were maize and two soyabean varieties and a wheat variety.

Going forward, Mr Matorofa said the group foresees growth driven by positive developments in the region.
“In Malawi the economy is expected to improve and we anticipate improvement in margins in 2013.
“With the new developments in West Africa, we expect to sell the first bag of certified seed in 2013. We also anticipate further growth in East Africa,” said Mr Matorofa.

Labels: SEEDCO

posted by MrK @ 2:35 PM