Seed Co sees revenue jump despite climate pressures
Lewanika Timothy | Monday August 25, 2025 09:13
The company reported a 38% rise in revenue to $5.6 million, supported by a 14% growth in volumes underpinned by the government subsidy programme and an effectively executed sales strategy. This drove a 60% surge in profit-after-tax to $0.9 million.
In its latest annual report the company noted that the growth in its books was supported by governments skin being in the game for farmers through an array of subsidy programmes that aim to bolster local food production.
“Revenue grew by 38% to $5.6 million, primarily driven by a 14% increase in volumes following the effective execution of a sales strategy supported by the government subsidy programme,” the company noted.
At group level Seed Co International confirmed that its revenue from contracts with customers rose alongside a growth in its margin, with gross margin improving from 47% to 50%. Profit before tax also registered growth of 32%, reaching $12.4 million.
“Consequently, profit-after-tax rose significantly by 60% to $0.9m,” the report noted.
The African seed manufacturer noted strong sales momentum across its counters with growth in key markets such as Botswana, Tanzania, and Malawi registering significant volume increases.
The positive performance in Seed Cos financial metrics comes as Botswana has been reeling from what the Southern African Development Community (SADC) described as the “worst drought ever recorded” in 2023–2024, leaving an estimated 68 million people in need of food assistance and devastating staple crops in its various reports.
The prolonged dry spells, rising temperatures, and frequent floods have led to widespread crop failures, reducing both seed demand and supply across the region, particularly in countries like Botswana.
Seed Co admitted that elsewhere in Africa adverse effects of erratic rainfall, droughts, and the El Niño phenomenon, contributed to a seven percent decline in overall volumes. The company said rising temperatures, frequent droughts, and floods continued to affect seed production, causing crop failures and lower yields, with knock-on effects for both demand and supply.
“The group remains well-positioned to navigate a challenging macroeconomic environment marked by currency depreciation, inflationary pressures, and the ongoing impacts of climate change,” directors said in the report.