ZIMBABWE – Seed Co International Limited (SCIL), a leading certified seed company in Africa expects to make a turn round of its earning in the interim period for the six months ended September 2020, attaining approximately 275% to 295% rise in profit.
According to reports by The Herald, the firm projects its profit after tax to between US$4.5 million and US$4.8 million a recovery from the loss before tax of the prior period which amounted to US$1.6 million.
The rise in profit is spearhead by the early maize seed sales, according to the group’s company secretary Terrence Chimanya.
The regional seed producer recently migrated its secondary listing from the Zimbabwe Stock Exchange (ZSE) to the newly formed Victoria Falls Stock Exchange (VFEX), becoming the first company to be listed on Zimbabwe’s new foreign currency denominated bourse.
VFEX is a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and will trade solely in foreign currency targeting companies in Zimbabwe and the Africa continent, before expanding across the globe.
The establishment of the platform follows the Ministry of Finance and Economic Development of the Republic of Zimbabwe undertaking investigations relating to alleged participation in parallel foreign currency market activities by dual-listed companies in Zimbabwe.
Seed Co International Limited is the first company to list on Victoria Falls Stock Exchange (VFEX).
The investigations noted that implied exchange rates were being derived from the comparison of dual listed share prices on the ZSE and other exchanges, and such implied rates were believed to be the leading indicators of speculative parallel foreign exchange rates in Zimbabwe.
In a bid to provide a permanent solution to the situation, the ZSE in consultation with the Ministry of Finance and Economic Development, established a subsidiary, the VFEX where dual-listed companies would be allowed to list their shares for trading in foreign currency.
To strengthen SCIL’s listing on VFEX, it has proposed to merger with its Zimbabwean operations, Seed Co Limited.
According to the group’s full year results to 31 March 2020, its turnover rose by 19% to US$71m while operating profit of US$12m and Profit before tax of US$9m both increased by 74% as compared to prior year.
The performance during the period under review was boosted by the increased seed demand in the region after the severe drought experienced last year.
In addition, exchange gains on foreign denominated receivables contributed positively to the financial performance for the year.
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