Zimbabwe’s largest seed producer, Seed Co Limited reported a $5,9 million profit after tax for the six months ended September 30, 2018 on the back of better pricing for wheat seed.
Addressing analysts in the capital yesterday, the group’s chief executive Morgan Nzwere said their profit margin was pushed by the timing of maize seed sales which kicked off earlier than other prior seasons.
Seed Co also attributed the profit to fair valuation of Seed Co International prior to its partial disposal to the shareholders of the group.
“The group achieved a profit after tax of $5,9 million largely due to the timing of maize seed sales which were earlier than normal.
“This mainly arose from fair valuation of Seed Co International prior to its partial disposal to the shareholders of the group,” said Nzwere.
Revenues grew by 81,76% for the period under review, excluding the fair valuation of Seed Co International, to $29 million from a 2017 comparative of $15,95 million.
“Despite the decline in wheat seed sales volumes, turnover increased by 82% to $29 million due top early maize seed sales on public agricultural support programmes. These sales were invoiced at the same price as last year,” added Seed Co.