SeedCo International projects US$4,8m profit

Source: SeedCo International projects US$4,8m profit | Herald (Business)

Seed Co Limited group finance director John Matorofa (left), group chairman David Long and group CEO Morgan Nzwere at the group’s financial results presentation yesterday

Business Reporter

SeedCo International Limited (SCIL) expects to return to the black when interim results for the period ended 30 September, 2020 are published on or before December 31.

The firm is projecting profit before tax of US$4,8 million. This will be a significant upturn from the loss after tax of US$1,6 million that the group recorded over the prior comparable period.

Seed-Co International remains the only company that is listed on the United States dollar-denominated bourse, the Victoria Falls Stock Exchange (VFEX).

But trades in the stock have been very limited since the regional seed producer listed on VFEX in late October. With regards to the anticipated profit outturn, the group said early seed sales had boosted its first half performance.

“The board of the Seed-Co International Limited (SCIL) group, therefore, hereby announces that the group’s interim profit before tax for the half year ended September 30 2020 will be approximately 275 percent to 295 percent between US$4,5 million and US$4,8 million better than the loss before tax amounting to US$1,6 million for the period ended 30 September 2019 mainly due to early maize seed sales,” said the group’s company secretary Terrence Chimanya in a trading update this week.

He said meaningful sales usually take place during the rainy season, which is the second half of the fiscal year.

Seed-Co International’s interim results for the period ended 30 September are expected to be published on or before December 31, 2020.

Seed Co International Limited is one of the leading certified seed companies authorised to market seed varieties developed by itself, Government and other associated seed breeders in its markets.

The seed manufacturer is primarily listed on the Botswana Stock Exchange, with a secondary listing in Zimbabwe on the VFEX, after shifting base from the Zimbabwe Stock Exchange (ZSE).

Meanwhile, Seed-Co International has indicated plans to take-over its Zimbabwean subsidiary – SeedCo Limited (SCL).

The deal is estimated at $5,1 billion.

“Subject to SCIL shareholder approval in a general meeting, the board is hereby proposing the acquisition by SCIL of up to 247,169,845 (two hundred and forty-seven million one hundred and sixty-nine thousand eight hundred and forty-five) SCL shares (constituting SCL’s entire issued share capital) through an open market offer to be settled through the issuance of new SCIL shares on the basis of 1 SCIL ordinary share for every 0,98 SCL ordinary shares held,” said the group in a recent notice to shareholders.