ZSE-Listed Seed House Reports Tougher FY26 Amid Climate and Liquidity Pressures Harare, Zimbabwe – Seed Co Limited has reported a 28% drop in revenue for the year ended 31 March 2026, as sales volumes fell sharply from a prior-year peak. A stronger product mix and disciplined cost control helped to cushion the impact in a challenging operating environment.
The Group, which breeds, multiplies, and distributes hybrid seed, is listed on the Zimbabwe Stock Exchange and presents its financials in US dollars in line with IFRS Accounting Standards.
Sales volume declined to 18,084 metric tonnes, down 40% from the prior year’s exceptional base and 8% lower than FY24. The company attributed the fall to three factors: disciplined credit risk management in the local market, normalisation of demand after a peak trading season, and lower export demand as regional seed availability recovered from drought-induced shortages.
Consequently, revenue declined by 28%. However, the decline was partially mitigated by an improved product mix and a smaller contribution from relatively lower-margin export sales. Gross margin narrowed from 57% to 50%, reflecting normalised USD trading dynamics and reduced economies of scale on lower volumes.
Operating profit fell 54% as reduced volumes weighed on economies of scale, while operating expenses declined 17% on the back of efficiency initiatives. Overall profitability declined by 54%, though higher contributions from associates provided some offset.
Net finance costs rose 13% due to ongoing working capital needs and higher borrowing costs. US Dollar facilities averaged 13.5% and ZWG facilities 40%, with some facilities secured by export receivables. Despite this, operating cash flow rebounded by $8.8 million, driven by cash sales growth and faster collections in the local open market and exports.
Non-current assets were stable as depreciation was offset by investment in research and processing infrastructure. Inventory fell 7% to $24 million to align with lower forecast demand, while trade receivables rose 10% due to post-peak collection timing. Borrowings increased by $3.9 million to fund working capital. The Board reported no contingent liabilities at year-end.
The company declared a final dividend of US0.68 cents for FY26, down from US0.91 cents in FY25.
Seed Co said its brand and diversified climate-smart seed portfolio supported farmer outreach and market presence, partially offsetting headwinds from climate variability, competition, and tight liquidity. Research and development remains a key focus. The Company released 2 new maize varieties and a new high-yielding wheat variety during the year.
Looking ahead, Seed Co remains well positioned for sustainable long-term growth despite climate variability and global supply chain pressures, citing continued innovation, disciplined execution, and market-focused strategies.
