VICTORIA Falls Stock Exchange (VFEX)-bound Seed Co Limited recorded a 14 percent jump in volumes in its Zimbabwe business unit during the third quarter ended December 31, 2022, driven mainly by export earnings and domestic foreign currency sales.
The company has expressed commitment to protecting and enhancing stakeholder value along the entire value chain of the group in Zimbabwe and in the region.
In a trading update for the third quarter ending 31 December 2022, company secretary Mr Tineyi Chatiza said volume sales increase bolstered the firm’s earnings over the past nine months compared to the same period in the prior year.
This was aided by ample stocks, exports, record local sales of wheat and soybeans, as well as favourable rainfall projections towards the start of the main planting season.
“Volume increased by 14 percent over the past nine months compared to the same period the prior year, and by 46 percent compared to the same quarter prior year, helped by ample stocks, exports, record local sales of wheat and soybeans, as well as favourable rainfall projections towards the start of the main planting season,” said Mr Chatiza.
“The board and management are still dedicated to protecting and enhancing stakeholder value along the entire value chain of the Group in Zimbabwe and in the region.”
However, on the regional level, the seed-producing giant forecasts a favourable performance with growth forecast in some regions of Southern Africa and East Africa due to drought in other regions.
On financial performance, Mr Chatiza said in line with volume growth and the evolution of the ZWL/USD exchange rates, revenue increased by 425 percent during the nine months compared to the same period the prior year, and by 516 percent during the quarter compared to the same quarter prior year in historical cost terms.
“When adjusted for inflation, revenue increased by 12 percent compared to the same nine months period in the prior year, and by 14 percent compared to the same quarter prior year reflecting the volume rise,” he said.
SeedCo Limited has notified its shareholders that it is joining the great trek to VFEX after the board approved the migration plan, a massive seal of approval of the bourse.
Already, there is a growing list of firms that have notified shareholders on shifting to the United States index bourse.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched in 2020 as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.