Hybrid seed technology giant, SeedCo, says it remains optimistic about growth prospects, despite a slowdown in sales during the first quarter ended June 30.
Revenues for the quarter fell by 56% to US$5,78 million, compared to US$13,1 million in the same period last year.
The company attributed the decline to reduced export volumes and subdued winter seed sales.
“The first quarter typically involves cost accumulation as the business prepares for the main summer seed selling season, which occurs in the second half of the financial year,” SeedCo said in a statement accompanying the trading update.
“Seed sales volumes declined by 59% year on year because of non-recurrence of export orders at the same level as prior year and due to subdued winter seed sales in Zimbabwe.
“Delayed crop establishment in the summer of 2024/25 season delayed crop harvesting, pushed back harvest timelines resulting in a compressed winter wheat planting window, reducing demand for winter wheat seed.”
The drop in sales translated to an operating loss of US$3,14 million, reversing a profit of US$5,38 million reported during the same period last year.
- Squeezing value from dividends
- Fake maize seed hits market
- SeedCo bemoans tough operating environment
- SeedCo abandons VFEX listing plans again
Keep Reading
SeedCo noted that last year’s exports were stronger as regional markets restocked early due to production failures linked to the El Niño weather phenomenon.
“The operating environment remains challenging, marked by climate-related shocks and fiscal and liquidity pressures,” SeedCo said.
“However, ongoing economic recovery initiatives, together with SeedCo’s strong sectoral position, create opportunities for growth.”
In its full-year financials for the period ended March 31, 2025, the company highlighted continued challenges in Zimbabwe’s agribusiness sector, including climate vulnerability and policy inefficiencies.
Still, the firm said it would pursue opportunities in high-value crops, technology, and sustainable practices that offer a pathway to recovery.
Despite persistent macroeconomic volatility, SeedCo said it remains resilient, leveraging its climate-smart varieties, relevance in the local market, and growing regional prospects.
The company’s land holdings have also appreciated in value, driven by government’s proposed New City development plans.
Higher sales volumes in the current financial year enabled SeedCo to wind down carry-over stock, with production volumes now being reviewed to maintain adequate stock levels across all maturity ranges.
Wheat seed that was in stock at year-end has since been sold during the current winter cropping season.
Following the mixed first-quarter performance, the company remains upbeat about a recovery in the second quarter and beyond.
“While Q1 (first quarter) performance reflected cyclical and climate-related headwinds, the anticipated agricultural recovery and SeedCo’s strong product portfolio, is expected to deliver trading performance recovery in the second half,” the firm said.
“By emphasising climate-resilient varieties and adopting strategic inventory management, the business is well-positioned to capitalise on the agricultural sector’s rebound while supporting national food security goals.”
