Published: 09 December 2025

Seed Co International Limited (SCIL), the foreign currency-earning subsidiary of the Seed Co Group, reported a dramatic reduction in its interim loss, narrowing it by nearly 93% to US$200 000 for the half-year ended September 30, 2025, from a US$2,8 million loss in the same period last year. The improvement is attributed to strict cost management, enhanced financing, and robust credit-risk governance.

SCIL, responsible for the group's foreign operations, saw revenue rise 15% year-on-year to US$46 million, largely driven by strong performance in maize and wheat sales and effective value-tracking pricing strategies. Overheads fell by 9% due to operational efficiencies and strengthened risk oversight, while net finance costs dropped following improved cash generation and early retirement of interest-bearing loans.

"Revenue growth, operational discipline, financing, and credit-risk management anchored this near break-even interim result," SCIL said in its half-year statement. The subsidiary, however, faced forex-related losses, particularly from Malawi, and monetary losses linked to hyperinflationary effects in some markets.

In contrast, local operations under Seed Co Limited (SCL) posted a US$5,73 million loss, reversing from a profit of US$1,21 million in the previous year. SCL's revenue fell 39% year-on-year to US$11,6 million, reflecting seasonal trading patterns, reduced exports after regional supply recovery, and a smaller winter wheat season. Trade receivables rose slightly by 6%, while inventory increased by 45% due to scaled-up production in anticipation of regional demand.

The group's balance sheet also showed divergent trends between subsidiaries. SCIL's total assets increased to US$169,1 million, from US$155,9 million in March, reflecting a stronger financial position. Meanwhile, SCL's assets declined to US$161,63 million from US$172,03 million, mainly due to a 15,1% reduction in trade and other receivables.

Looking ahead, SCIL highlighted that the 2025/26 seasonal outlook predicts normal to above-normal rainfall across much of Southern Africa, while East Africa may experience below-normal rainfall. The company remains confident in leveraging its broad and adaptive product portfolio, including climate-smart hybrids, to support smallholder farmers and navigate the challenges of currency volatility, inflationary pressures, policy changes, and intermittent political instability.

"By deepening regional integration and capitalising on our value proposition to smallholder farmers, the group is well-positioned to sustain growth, drive operational excellence, and deliver enhanced shareholder value," SCIL stated.

The group's performance underscores its resilience in complex regional markets and the effectiveness of cost and risk management strategies in mitigating operational challenges.
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