Uncategorized

Seed Co performing well on regional exchange

07 Dec, 2018 - 00:12 0 Views
Seed Co performing well on regional exchange

eBusiness Weekly

Enacy Mapakame
Seed producer, Seed Co limited, says its regional operation that was recently unbundled and listed on the Botswana Stock Exchange (BSE), has performed well on the regional exchange apart from raising over $20 million to capitalise its operations.Group chief executive Morgan Nzwere, said the unit was trading at a premium of 200 percent on the BSE compared to the Zimbabwe Stock Exchange (ZSE).

The group undertook a separate listing of the Seed Co International that was preceded by a capital raise of $19,22 million through a placement of Seed Co International Shares with Vilmorin & Cie SA, a related party, which capital raise was meant to address the short to medium term funding  needs of the regional operations.

Nzwere said the firm was doing well.

He added their relation with Limagrain was also paying dividends for the entire Seed Co group as the former brought in technology transfer through modern labs, access to the best research sites as well as contributing towards capital raise.

“In Botswana the company has performed extensively well as seen on the BSE, trading at a premium of 200 percent compared to the Zimbabwe Stock Exchange.

“The company has raised $20 million hard cash which will be deployed in the region for the capitation of the company and some of it will be directed to research,” he said in an interview on the sidelines of the group’s financial results presentation.

Overall, Nzwere said the group’s performance was commendable in Africa, notwithstanding the economic challenges and security issues in some markets across the continent.

For instance, product pricing as well as foreign currency shortages to procure essential raw materials and meet foreign obligations was a  challenge.

“Overall the company is doing well in Africa despite a few issues here and there. Malawi for example at the half-year stage was at 21 percent higher than budget anticipated. Exports to other neighbouring countries alongside the Government import programme have been crucial to the company’s performance.

“But the economic turbulence is affecting the company especially with pricing because the company has no control over pricing because this is a mass product and the Government is bound to regulate the prices despite the fact that costs of keeping afloat are increasing due to the inflationary pressures affecting everyone.

“If suppliers of fertilisers, chemicals and various material for the factory are increasing prices, its implications to the performance of the company is grave,” he said.

In the half year to September 30, 2018, Seed Co reported revenue rose 82 percent to $29 million from $15 million during the same period in the prior year driven by a 115 percent jump in maize sales.

Profit from continuing operations amounted to $5,9 million from a loss position of $35 million mainly driven by earlier than normal timing of maize seed sales as well as growth in finance income.

Share This:

Sponsored Links

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds