Seed Co says it expects higher local US$ sales, driven by improved export performance and stronger domestic demand, while regional results remain mixed.
Seed Co is betting that surging local US$ sales will continue, aiming to strengthen its foreign currency position as the business heads into the next year.
In a trading update covering the third quarter ended December 31, 2022, the company said it remains optimistic about increased US$ sales, linking the outlook to both export momentum and expanded domestic sales in Zimbabwe.
That matters because for firms operating in environments with currency pressures, sustained hard-currency sales can shape everything from supply planning to investment decisions.
Seed Co said Zimbabwe is expected to see volume growth alongside a higher contribution from hard currency revenue. The company pointed to encouraging export growth and a significant rise in local US$ sales as key drivers, alongside expectations for stronger overall activity.
Regionally, the update described a more mixed picture. Some parts of Southern Africa and East Africa are expected to show growth, while other areas in East Africa face headwinds due to drought conditions.
For investors and suppliers, that uneven regional performance is an important signal: it suggests progress may depend on where demand holds up and where weather disrupts production cycles.
On the performance side, Seed Co reported that value was maintained in real terms during what it described as the company’s peak period of revenue generation. It attributed this to exchange-rate stability and an increase in hard currency sales in Zimbabwe.
The company also noted strong movement in quantities over the nine-month period, supported by ample stocks, exports, and record local sales of wheat and soybeans, while favourable rainfall projections were expected to support the start of the main planting season.
In financial terms, Seed Co reported sharp revenue increases in historical cost terms during the nine months and the quarter, while acknowledging that inflation-adjusted revenue growth was more modest, tracking the volume rise.
The message at the end of the update was a continuation of that theme: management said it remains focused on protecting and enhancing stakeholder value across the group’s value chain in Zimbabwe and across the region.