Seed Co forecasts 65 -75% profit growth, despite Covid-19 effects on business

By Wellington Zimbowa
SEED Co International Limited Group forecasts a final profit increase of between 65 – 75 percent (%) for the year, ending 31 March 2020, compared to the previous trading year.
The Botswana Stock Exchange-listed firm and a spin-off from Seed Co Zimbabwe, in a recent trade update, eyes a 65% – 75% final profit, approximately US$3.5 million and US$3.9m, a notable increase from a US$5.2m profit before tax realized, in the previous year.
The bullish drive is largely supported by the core seed business and hinged on increased sales volumes and favourable currency movements on net foreign-denominated receivables.
Seed Co International also notes that being a pivotal food security player; measures by different governments in the various operational countries saved it from the huge Covid-19 blow, while also acknowledging the significant role played by development partners.
Most sales for the selling period under review had already been concluded from the selling season for the same period; hence the pandemic had less negativity on its business.
However, other value chain operations continue to be affected, although the agriculture business of the seed giant is a legally protected essential service that was not affected by the lockdown.
“In response to the catastrophic effects of the pandemic on lives and business (economy, customers, labour & logistics), the company swiftly formulated and implemented a Business Continuity Plan (BCP),” Seed Co International said.
The seed company plays an important role in ensuring food security and is at the entry point, being at the beginning of the food value chain.
Thus the company is optimistic that strong measures by governments, development partners, and other key stakeholders, to ensure food security, will guarantee uninterrupted production, and business during and post the pandemic.
The audited financial information on which this trading update is based will be released before the end of June 2020.

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