Seed Co Limited (Zimbabwe) – FY22 earnings decline to US$5.6m due to late rains

Published On: July 26, 2022By Tags: Southern-Africa

Seed Co Limited , FY 2022 earnings decreased to US$5.6 million from US$10.2 million in 2021.


  • H2 2022 was more profitable with earnings of US$5.3 million compared to H1 which had earnings of US$0.3 million.
  • Operating margins decreased to 50% compared to 69% year prior.
  • FY 2022 sales revenue increased by 44% while inflation in fiscal year to March 2022 was 73%.
  • Sales of seed fell 20% as a result of late rains and exacerbated by a mid-season dry spell.
  • Associates & J/V contribution declined to US$1.2 million from US$2.0 million year prior.

Investor Issues

  • Investors should note that H2 2022 earnings rose sharply over the weather induced H1 earnings decline.
  • High inflation and Zimbabwe currency weakness are among Seed Co Ltd constraints.
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    About the Author: Hartland-Peel Africa Equity Research

    Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.

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