- Earnings per share to be approximately 380% to 400% lower than last year
- Reduced sales volume and product shortages cause adverse outturn in profits
Seed Co International Limited has advised investors to exercise caution when dealing with its securities as the Group’s interim Earnings per Share (EPS) for the full half-year ended 30 September 2022 are expected to drop by approximately 380 percent to 400 percent.
This is between 1.41 and 1.48 US cents lower than the EPS of 0.38 US cents for the corresponding period ended 30 September 2021.
According to the certified seed company that primarily listed on the BSE, the significant anticipated adverse outturn is mainly due to reduced sales volumes in the absence of the unusual early seed sales that occurred in Malawi and product shortages in Nigeria and Kenya. “With the non-recurring early seed uptake in Malawi, the Group reverted to the traditional first half cost accumulation status in line with the highly seasonal nature of the business,” says Seed Co statement. “Meaningful sales activity in the dominant Southern African markets of the Group take place in the rain second half of the year, which explains the traditional losses the Group incurs during the first half.”
However, Seed Co explained that on the back of enhanced focus on food security and the strength of the geographical spread that should mitigate mixed rainfall forecasts in most parts of Southern Africa and parts of East Africa, the Group is optimistic of a better performance. In issuing this statement, the company was fulfilling the Equity Listings Requirements of the Botswana Stock Exchange that compel issuers to announce, through the BSE and the press, if the variation between its expected Earnings per Share (EPS) and the previous corresponding period exceed 10 percent.