Seedco and Bindura results

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Seedco reported its results for the half year ended 30 September 2016 showing an increase in revenue but also an increase in the loss for the period against prior year comparative. Revenue for the period amounted to $24.8 million up 32% from $18.8 million prior year comparative. Cost of sales however went up by 42% to $14.9 million from $10.5 million prior year. This resulted in an increased operating loss of $7.5 million against a loss of $4.9 million prior year. Finance costs also went up to $2.1 million from $1.1 million prior year comparative. Overall the Group posted a loss of $9.3 million up 69% from a loss of $5.5 million prior year. Commenting on the results, management said turnover had increased due to early maize seed sales and improved vegetable seed sales. Gross margins were however 4% down due to write down of some old stocks. Finance director John Matorofa told analysts yesterday that despite the increase in sales, loss after tax increased due to inventory write offs, exchange losses of $2 million in mainly in Zambia and Malawi and finance charges which doubled to $2 million from $1 million. “Finance charges increased due to discounting of treasury bills in Zimbabwe (of between 7-10%) and delays in payments by governments of Zambia and Malawi, which led to extended borrowings.”Bank borrowings increased by $16.6 million due to the seasonal funding of seed deliveries. Matorofa said the borrowings were higher than usual due to delayed payments by the Malawi and Zambia Governments. The group also said Zimbabwe had foreign debt of $5 million but there had been challenges in servicing it as payment had been in queue for about a month. In spite of the challenges, the group had adequate stocks to meet anticipated demand for the current selling season. – NewsDay, 29 November 2016

Income statement half year to 30 September 2016 2015 2016
Revenue 18,789,549 24,807,549
Cost of Sales -10,498,946 -14,986,946
Gross Profit 8,291,134 9,876,668
Other Income/(expenses) 2,481,665 -1,665,784
Operating Expenses -15,686,692 -15,710,838
Operating Income -4,913,893 -7,556,020
Loss after tax -5,569,187 -9,290,862

Bindura Nickel Corporation Limited reported its results for the half year ended 30 September 2015 showing growth in both production, revenue and profits. Production for the period increased by 23% to 3,420 tonnes while revenue was up 9% to $22.5 million. The increase in both production and revenue was possible in spite of the 19% decrease in the average nickel price received for the period to $6,198 per tonne. Head grade was 1.9% versus 1.4% in the same period last year. Recovery was 88.1%, which was better than last year’s achievements of 85.8%. Aggressive costs management initiatives however helped the miner decrease its all-in sustaining costs by 33% to $14.3 million. Gross profit increased to $8.1 million up 268% from $2.2 million prior year comparative. Profit after tax was $1.2 million versus a prior year loss of $3.4 million. – The Herald, 29 November 2016

Income statement half year to 30 September 2016 2015 2016
Turnover 20,559,956 22,457,659
Cost of Sales (18,304,939)(14,318,944)
Gross Profit 2,255,017 8,138,715
Marketing expenses -3,462,904 -3,782,347
Admin Expenses -3,093,045 -2,639,041
Operating Income (loss) -4,108,822 2,234,662
(Loss)/Profit after tax -3,359,511 1,184,245

Old Mutual Zimbabwe is set to list 83,011,718 B-Class shares on the newly established Financial Securities Exchange (FINSEC) Alternative Trading Platform at a nominal value of $0.0000032 per share. Old Mutual Zimbabwe is owned 75% by Old Mutual Plc while 25% is set to be owned by indigenous persons and will be traded on the FINSEC trading platform. The shares will be listed on the 1st of December 2016. – Daily News, 29 November 2016

By |November 29th, 2016|Categories: Headlines, SEED|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.