Seed Co International Limited

Seed Co International (VFEX) anticipates lower EPS for the full half-year ended 30 September 2022

By Published On: November 21st, 2022Categories: Corporate announcement, Earnings

The Equity Listings Requirements of the Botswana Stock Exchange (BSE) compels issuers to announce through the BSE and the press if the variation between its expected Earnings Per Share (EPS), and the previous corresponding period exceeds 10%.

The Board hereby announce that the Group’s interim EPS for the full half-year ended 30 September 2022 will be approximately 380% to 400% (between 1.41 and 1.48 US cents) lower than the EPS of 0.38 US Cents for the corresponding period ended 30 September 2021.

The notable significant anticipated adverse outturn is mainly due to reduced sales volume in the absence of the unusual early seed sales that occurred in Malawi, product shortages in Nigeria and Kenya unlike prior year. With the non-recurring early seed uptake in Malawi, the Group reverted to the traditional first half cost accumulation status in line with the highly seasonal nature of the business. Meaningful sales activity in the dominant Southern African markets of the Group take place in the rainy second half of the year which explains the traditional losses the Group incurs during the first half.

Investors are therefore advised to exercise caution when dealing with the securities of Seed Co International Limited.

Rainfall forecasts are indicating normal to above normal rains in most parts of Southern Africa and below normal to normal rains in parts of East Africa. On the back of enhanced focus on food security and the strength of the geographical spread that will mitigate mixed rainfall forecasts, the Group is optimistic of better performance.

The financial information on which this trading update is based has not been reviewed or reported on by Seed Co International Limited’s Independent Auditors.

By Order of the Board,

E. M. Kalaote
21 November 2022

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