Seed Co anticipates profit decline
Seed Co International Limited anticipates lower profits in its year ended March 2022, due to reduced sales volumes during the period. The group stated that its profit before tax for the full year period will be approximately between 20 percent and 30 percent (between US$3.1m and US$4.6m) lower than the profit before tax from continuing operations amounting to US$15.3m for the corresponding period ended 31 March 2021.
The decline is mainly attributed to reduced sales volume performance and adverse impact on economies of scale. In its year ended March 2021, the Group's Profit increased by 82 percent driven by the phenomenal volume performance and an austerity Business Continuity Plan to mitigate the effects of the Pandemic.
Presenting the financial results last year, Seed Co Group CEO, Morgan Zwere explained that no meaningful sales were recorded during the first half of the year. “This is normal for Botswana.” He highlighted that in the prior year, government debt settlement was slow, and this had a bearing on this year’s sales. In its Botswana business operations last year, Seedco group recorded turnover of $9.9 million compared to $9.2 million in the prior year. Nzwere said despite the challenges posed by COVID-19 restrictions, the Group generally had adequate stocks last season.
Agriculture remains designated as an essential and critical area and operations have been allowed to continue with limited interruptions. “Seed Co’s thrust is to stay abreast of climate evolution by continuously innovating and introducing products adaptable to current and predicted climate trends.”