Strong maize, wheat performances boost Seed Co’s revenue
Larona Makhaiza | Wednesday December 10, 2025 06:00
According to the regional seed giant’s interim results for the half-year ended September 30 2025, earnings went up 15% from US$40 million (about P530m) registered during the same period last year to US$46 million (about P610m). Group Chief Financial Officer, Tineyi Chatiza, said the improved financial performance reflected a disciplined recovery strategy. “Our product mix continues to strengthen margins even when volumes fluctuate. “This has been key in stabilising the business in a highly volatile operating environment,” he said. The improvement came despite a seven percent drop in sales volumes, largely attributed to stockouts in Malawi, erratic rainfall in Kenya and Ethiopia, and late product availability in Zambia. Maize seed remained the Group’s flagship product, contributing 88% of total volumes. Seed Co’s bottom line nearly broke even, with the group posting a marginal US$0.2 million loss, a significant improvement from the US$2.8 million loss recorded last year. Earnings per share improved to –0.06 cents from –0.71 cents.
A stronger product mix helped lift gross profit margins to 49% from 47%, while operating expenses fell by nine percent to US$17.4 million due to cost optimisation measures and tighter credit risk controls. Finance costs also improved, dropping by US$0.8 million as the Group benefited from better working capital management. Chatiza noted that the return to profitability before tax demonstrated the group’s resilience. “We have moved from a US$2.4 million loss last year to a US$0.8 million profit before tax. This turnaround is evidence of improved operational discipline and stronger treasury management,” he said.
On the balance sheet, total assets rose eight percent to US$169.1 million due to higher inventories and receivables aligned with seasonal cycles. On the one hand, borrowings increased to US$39.3 million to support raw seed procurement, while equity softened slightly following the half-year loss, dividend payouts, and currency translation effects. “Improved cash generation and tighter cost controls position us well for the remainder of the year. We expect the momentum to continue as rains strengthen demand across key markets,” he added. However, directors warned in a statement accompanying the results filed with the Botswana Stock Exchange that although weather forecast is promising, the operating environment remains complex.
The market is 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, they noted. “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,” directors said. “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.”