Seed Co International Posts 5% Revenue Growth Despite Economic and Climatic Adversities

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Pan-African seed giant, Seed Co International, has reported a 5% increase in revenue for the financial year ending March 31, 2025, demonstrating resilience in the face of multiple challenges. The company, which is listed on the Botswana Stock Exchange, managed this growth despite a difficult operating environment marked by global and regional economic stress, political unrest, and adverse weather conditions.

According to the company’s recently released financial report, the growth in revenue was primarily driven by an enhanced product mix, which offset the impact of declining sales volumes. Seed Co faced volume constraints due to product stockouts and trading disruptions in Mozambique, where post-election political instability significantly affected the sales cycle.

Despite these obstacles, gross margin improved to 50%, up from 47% in 2024, supported by a better product mix that favored higher-margin seed varieties. However, operating overheads increased, reflecting the Group’s strategic decisions to invest in market expansion, organizational restructuring, and initiatives aimed at countering inflationary pressures.

On the financial side, Seed Co reported a notable reduction in net finance costs, thanks to strong cash generation and a disciplined approach to debt reduction (deleveraging). This financial discipline helped the Group maintain profitability. “Amidst intense economic and climatic challenges, our Group remained operationally strong, carefully managing costs and preserving its competitive edge in core markets,” the company noted.

Seed Co highlighted that regional currency volatility, inflation, political instability, and unpredictable weather patterns created significant disruptions in both its value chain and efforts to preserve asset value. To mitigate these risks, the company intensified its focus on cash flow generation, reducing reliance on credit and lowering exposure to debt.

Additionally, the Group realigned its investment portfolio to cope with capital constraints, even though these changes had short-term financial repercussions. Throughout the turbulent year, Seed Co credited its strong brand presence, proactive demand generation strategies, and customer engagement efforts for sustaining business performance.

The company’s improved cash generation capacity helped reduce its gross and net debt-to-equity ratios from 46% to 34% and 18% to 16%, respectively. This deleveraging led to significant savings in finance costs, reinforcing the Group’s financial stability. In summary, Seed Co International’s ability to navigate a turbulent year with solid revenue growth, margin improvement, and reduced financial risk underscores the effectiveness of its strategic planning and operational agility.

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Seed Co is a leading Pan-African seed company that breeds, produces, and supplies high-yielding, disease-resistant, and climate-adaptive certified seed varieties, with a core focus on hybrid maize, wheat, soya bean, and other key crops. Operating in nearly 20 African countries, the company runs extensive R&D programs, out-grower schemes, and collaborates with a wide ecosystem of farmers and partners. As part of the global Limagrain Group, Seed Co leverages world-class capabilities to strengthen its position as a dominant and agile player in Africa’s seed industry. Its growing footprint spans Southern, Eastern, and Western Africa, including major markets like Kenya, Nigeria, South Africa, Zambia, and Zimbabwe.