Pan-African seed producer Seed Co International has defied challenging market conditions — including global and regional socio-economic pressures as well as adverse climatic factors — to grow its revenue by 5 percent for the financial year ended 31 March 2025.
The Botswana Stock Exchange-listed company disclosed the results in its latest financial report. Seed Co attributed the revenue growth to an improved product mix, which helped offset the impact of lower sales volumes. Volumes were affected by stockouts and trading disruptions in Mozambique, where political instability following elections disrupted the selling season.
Seed Co said Gross margin increased to 50 percent (2024:47 percent), helped by a good product mix. Overheads increased as the Group invested in market expansion, organisational restructuring, and inflation resilience initiatives.
“Net finance costs declined significantly, driven by strong cash generation and disciplined deleveraging during the year.”
“Despite several external challenges, the Group delivered net profit growth, affirming strategic resilience.”
The Group said amidst raging global and regional socio-economic and climatic challenges, the Group remained resilient, driving operations, managing costs, and sustaining relevance in its markets.
According to Seed Co., the market-specific challenges like political unrest, currency shocks, inflation, and erratic weather patterns disrupted the Group’s value chain and value preservation, respectively.
Seed Co said in response to some of the challenges, the Group enhanced its cash generation drive to reduce both credit and debt risks.
“In addition, the Group undertook strategic investment portfolio reshaping to manage limited capital, despite short-term financial impacts.”
“Throughout these challenges, strong brand equity as well as focused demand creation and customer intimacy execution anchored the Group’s performance.”
Financial Position
Meanwhile, Seed Co said its non-current assets increased due to strategic capital projects and revaluations that offset depreciation drag.
On the other hand, the investment value in associates reduced after the Group’s interests in the South African associate were diluted.
It explained that the Inventory levels rose due to the disrupted trading in Mozambique and harvesting deliveries in East and West Africa.
Furthermore, Seed Co’s receivables also increased, driven by grower advances as production was scaled up to restock in major production hubs.
Seed Co noted that improved cash generation resulted in the gross and net debt-to-equity levels declining from 46 percent and 18 percent to 34 percent and 16 percent, respectively.
“This reduction in gearing explains the notable savings in finance costs,” Seed Co explained.
