Seed Co Limited has started the 2027 financial year on a stronger footing after increasing seed sales by 22 percent, signalling improving demand from farmers despite persistent global cost pressures.
In a trading update for the first quarter ended June 30, 2026, the seed producer said it sold 4,145 metric tonnes (MT), up from 3,393 MT during the same period last year.
The higher volumes lifted revenue by 19 percent to US$6.9 million, compared with US$5.8 million recorded a year earlier.
The company attributed the growth to stronger demand for winter cereal seed and the commencement of maize export sales.
"Revenue rose 19% to US$6.9 million from US$5.8 million, driven primarily by a rebound in winter cereal seed demand and early maize export volumes," the company said.
Despite remaining in a seasonally loss-making period, Seed Co significantly reduced its operating loss.
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The company reported a 35 percent reduction in its seasonal operating loss to US$2 million, from US$3.1 million in the first quarter of FY26.
According to the company, the improved performance reflects stronger sales, supported by prudent financial management.
"The improved revenue and sales, together with sustained cost discipline and credit risk management, contributed to a 35% narrowing of the seasonal operating loss to US$2.0 million, compared with a US$3.1 million loss in Q1 FY26," it said.
The results come as Zimbabwe's operating environment continues to stabilise, with businesses benefiting from exchange rate stability and easing inflation. However, global developments continue to weigh on production costs.
"The operating environment remained broadly stable during the quarter, backed by relative exchange rate stability, softening inflation and monetary discipline. However, the benefits were partly offset by rising input and distribution costs, reflecting ongoing geopolitical tensions in the Middle East and Eastern Europe and their impact on global logistics, energy, chemicals and fertiliser supply chains," the company said.
Seed Co said preparations for the main selling season are now underway, with management maintaining a cautious approach to financial management.
"Attention is now turning to preparations for the main selling season. The company remains focused on cash generation and disciplined working capital management, consistent with the seasonal nature of its operations, while advancing the development of the retail channel," the company said.
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