BY VERNA NYAMUCHENGWE
Verna Nyamuchengwe
Farming inputs company, Seed-Co Limited reported strong third-quarter results for the period ending 31 December 2024 after a 48% surge in revenue.
Revenue rose from US$42.5 million in the third quarter of 2023 to US$62.7 million during the period under review.
This impressive growth resulted in a 25% increase in operating profit, reaching US$25.8 million from US$20.7 million reported from the same period in 2023.
The key driver behind the performance was a significant jump in sales volume. Sales increased by 45%.
Seed-Co sold 26,919 metric tons of inputs during the third quarter of 2024 surpassing the 18,520 metric tons reported in the corresponding period of 2023.
Group secretary, Faithful Sithole said the company was resilient and capitalised on domestic demand and regional opportunities to achieve a strong year-end.
“The business delivered a strong Q3, with revenue up 48%, driven by higher volumes and record exports amid drought-induced stockouts across the regions,” Sithole said.
He said performance from the previous quarter enabled the company to close the third quarter strong.
“Operating profit increased significantly, fueled by sales expansion and cost optimisation. Margins remained robust due to enhanced productivity and effective resource management,” he said.
Sithole reported that despite climate change and economic challenges, the company has opportunities due to growth in the agricultural sector across the region.
“Zimbabwe’s economy remains moderately subdued, against a backdrop of a delayed and patchy rainfall pattern that continues to disrupt the sector performance. Authorities are actively working to mitigate these issues,” Sithole said.
“Across our African markets a mix of external headwinds: inflation, currency volatility, and climate-related shocks continue to weigh heavily on the region. However, growth in the agriculture sector, along with strong demand for climate-smart seed varieties, presents opportunities for the Company.”
