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LISTED seed-producer SeedCo registered a three percent increase in profit after tax to $15,4 million for the year ended March 31, 2016 from $15 million recorded the previous year. The group’s turnover was unchanged at $96 million from prior year. This was notwithstanding the effects of the El Nino induced drought, depressed commodity prices and a general reduction of the government input programmes in the country in which the seed-producer operates, which affected demand for its products.

Finance costs were down 39 percent $1, 9 million due to access to cheaper loan facilities. SeedCo’s gross margin increased by seven percent during the period.

“This was due to the increased efficiency in cost of sales management through reduced inventory write-off, as well as value pricing in selected markets and products in short supply,” attributed management.

Total sales volume down 16 percent on prior year as

a result of the challenging exogenous factors indicated earlier. The group’s operating costs were up as a result of the inclusion of the new vegetable business expenses and increased market development costs in new markets.

Trade receivables, money owed to the business by its debtors, stood at $42 million at the close of the year, a 10 percent decline due to government business being done by through financing structures and improved debt collection.

SeedCo’s short term borrowings have also increased quite significantly to $28,5 million. In terms of outlook, the group said it is going to focus on growing its ultra-early maize seed varieties in the region.

“There is increasing demand for our recently released ultra-early maize seed varieties with the changing weather patterns and we expect to increase share in most markets,” said the company in a statement accompanying the results.

The board has recommended a dividend of 0, 2 cents per share. — BH24