Cottco Holdings Limited issues upbeat trading update for Q1 2022

Published On: April 28, 2023Company: Cottco Holdings Limited (
What are the key factors driving Cottco's positive Q1 2022 trading update?
Improved agronomic season, increased lint prices, full order book, and cost containment activities with improved operational efficiencies are driving Cottco's positive Q1 2022 trading update.

Key Points

  • Cottco Holdings Limited reports intake target of 150,000MT, an increase from 82,479MT in 2020
  • Lint prices have firmed up to around US 88c/lb in 2021 due to increased demand and low world stocks
  • Business achieved 56,681 MT being 313% of intake target as at 30 June 2021, with a full order book for both lint and ginned seed
  • Company forecasts exporting 76% of its lint in 2021
  • Cost containment activities and improved operational efficiencies expected to ensure no loss for financial year ended 31 March 2022
  • Government committed to clearing 2020 outstanding subsidy balances for cotton farmers and a plan has been agreed for 2021 support
  • Cottco testing high-yielding variety and intends to roll-out on a larger scale to improve farmer viability and grow volumes
  • Government intends to increase shareholding in Cottco from 37.1% to 51%

Useful links

About Cottco Holdings Limited (

Cottco Holdings Limited is a cotton-producing company engaged in the process of grading, testing, classifying and marketing of cotton in Zimbabwe. The company, which is listed on the Zimbabwe Stock Exchange, is an exporter of cotton in the country. Cottco is a vertically integrated operation, controlling a range of activities such as ginning, packing, warehousing, and transport. The company also manages its own seed production activities and provides a range of services for small-scale farmers.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.


Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.

Related articles