ZSE listed seed producer, Seed Co maize seed sales on open market grew by six percentage points in the half year to September and the company expects further sales growth in November with onset of the rain season.
For the period under review, the group recorded $16 million revenue, a seven percentage point slump from last year’s figures during same period.
The group narrowed losses after tax to $7, 6 million. The 40% loss cut comes on the back of a six percentage point increase in maize volumes and an 11% leap in gross margins.
Group chief executive Morgan Nzwere told shareholders yesterday that margins at 50% improved to prior year of 39% due to “a combination of minimal stock write offs and price increases in most of the groups markets.”
The group recorded revenue of $16m for the period to September as compared to $17m in the same period prior year.
“The period was characterised by subdued sales of winter cereals which were 25% lower than prior year. Maize seed sales were 6% higher than prior year and are expected to increase in November with the onset of the rain season in most of our markets,” Nzwere added.
During period under review, Seed Co’s balance sheet grew by 4% to $177,9m. Non-current assets also grew from $49,12m last year to $69,24m due to the completion of a factory in Malawi and the issuance of $23,9m long term treasury bills by government.
The groups’ account receivables reduced by 53% to $34,8m due to debt collections and transfer of $23,9m due from government. In Malawi, the new government was still to clear the balance of almost $1,6m on its subsidy programme.
In Tanzania the Cotton development Fund owes Quton Tanzania $3,3m dollars and the payment have been coming slowly.
Turning to the maize seed uptake in the market sofar, Nzwere said there has been some movement of seed. He however said, volumes had stalled on the open market in October due to government announcement of the input support scheme.