Seed Co Ltd has demonstrated remarkable resilience in the face of macro-economic instability, tight liquidity, and credit risk, leveraging its strong brand equity, cost discipline, and expanding market access to post a near break-even interim result. The group’s financial performance for the half year ended September 30, 2025, has been anchored in brand equity, cost efficiencies, financing, and credit risk management.
The financial highlights of the group are a testament to its ability to navigate challenging economic conditions. The net loss has narrowed significantly to $0.2 million from $2.8 million in the prior year. Revenue growth has been driven by strong performance in maize and wheat, with a 15% increase in revenue. The group’s focus on operational excellence and risk governance has also led to a 9% decline in overheads. Additionally, net finance costs have declined significantly due to better cash generation and early retirement of interest-bearing loans.
The group’s financial position remains strong, with stable non-current assets. Trade receivables have increased by 6%, which is lower than the 15% revenue growth, indicating effective credit management. Inventory has increased by 45% due to scaled-up production to meet anticipated regional demand. However, shareholders’ equity has contracted due to a higher dividend payout ratio and translation losses.
Looking ahead, food security remains a strategic priority across Africa, and the group is well-positioned to navigate the challenges. The current 2025/26 seasonal outlook projects normal to above-normal rainfall across much of the Southern African region, while below-normal rainfall is anticipated in several parts of East Africa. The group remains alert to these divergent climatic scenarios, leveraging its broad and adaptive product portfolio to ensure the availability of seed varieties suited to evolving rainfall patterns across its key markets.
The operating environment remains complex, marked by persistent currency volatility, inflationary pressures, shifting policy frameworks, and intermittent political instability. However, the group remains confident in its ability to sustain growth, drive operational excellence, and deliver enhanced value to shareholders through its diversified product portfolio and strong value proposition to smallholder farmers.
