Seed Co Limited’s shareholders’ equity fell to US$120.8 million in the half year to 30 September 2025, down from US$129.77 million at the end of March, as the seed producer absorbed the impact of lower sales volumes and posted an interim loss.
The company reported a US$5.73 million loss for the period, compared to a US$1.21 million profit in the same period last year.
Management attributed the downturn to reduced trading activity, a smaller winter wheat season, weaker export demand as regional markets normalised, and timing differences inherent in the agricultural cycle.
Revenue declined by 39% to US$11.56 million, from US$18.91 million in 2024, although gross margins were described as “resilient” amid tighter cost controls. Operating expenses remained broadly unchanged at US$9.99 million, despite the fully dollarised cost base, reflecting internal discipline.
Seed Co said its balance sheet remained solid, supported by property, plant and equipment valued at US$44.92 million, inventories of US$26.84 million and trade receivables of US$58.70 million.
Related Stories
Total assets stood at US$161.63 million, slightly down from US$172.03 million recorded at year-end.
The decline in equity was driven by the interim loss and the US$2.24 million dividend paid during the period. The company did not declare an interim dividend this cycle, in line with its policy that reflects seasonality in cash flows.
Cash flows strengthened, with operating activities generating US$3.50 million, compared to a negative US$2.32 million last year.
This improvement was supported by tighter working-capital management and improved collections, although finance costs rose to US$2.07 million due to increased reliance on short-term borrowing.
Despite the softer first half, Seed Co expressed optimism about the second half of the financial year, anticipating stronger planting activity ahead of the 2025/26 summer season.
The group also highlighted continued investments in research and development, including new maize hybrids and a high-yielding wheat variety aimed at advancing climate-smart agriculture.
Leave Comments