CHAMWE KAIRA
Agra Limited has advised shareholders that the company’s profit after tax, basic earnings per share and headline earnings per share for the year ended 31 July 2024 is expected to decrease by between 17% and 23% compared to the previous financial period.
Agra said the results reflect a period that was challenging in unprecedented ways but also demonstrate the strength and resilience of both the company and the Namibian agricultural sector.
“The severe and ongoing drought has tested Agra’s operations, stakeholders, and the very foundation of agriculture in Namibia. Yet, through these trials, Agra has emerged not just as a survivor but as a leader, steadfast in the commitment to support the industry and communities. Nevertheless, these external pressures have contributed to a decline in financial performance for the year,” the company said in a notice from the Namibia Stock Exchange.
In 2023, Agra was anticipating financial strain in 2024 due to factors such as escalating fuel prices, rising inflation, and challenges associated with sourcing essential farming input materials.
Additionally, the company said the prevailing high-interest rate environment in 2023 added complexity to the equation.
“Our assessment also encompasses meteorological influences and a continued focus on enhancing credit control practices. We remain vigilant about potential supply chain disruptions caused by load shedding, impacting South African producers, which could lead to fluctuations in availability,” the company said in financial results for the period ended 31 July 2023.
Agra’s increased revenue did have a positive impact on our gross profit, marking a 9.6% rise from N$433.9 million in 2021/22 to N$475.4 million in 2022/23.
Operating expenses recorded a modest 3% increase, moving from N$329.8 million in 2021/22 to N$339.7 million in 2022/2023, which was below the Namibian inflation rate of 4.5%.
This was attributed to the company’s firm commitment to cost control as well as a N$12.3 million employer fund contribution holiday that Agra capitalised on.
The net impact on Agra’s overall performance was a notable 22.8% increase in profit after tax for the year, increasing from N$75 million in 2021/22 to N$92.1 million in 2022/23, and a total comprehensive income for the year of N$94.1 million, compared to N$77.2 million during the previous year.
