CHAMWE KAIRA
Agra has said it remains acutely aware of the challenges posed by the ongoing severe drought and its impact on the agricultural sector.
The company said it is committed to navigating these obstacles by implementing strategic measures that enhance its support for producers and strengthen its operational resilience.
“Our focus will be on maintaining our commitment to delivering exceptional value to our stakeholders. By prioritising robust risk management practices and fostering collaboration within our communities, we aim to reinforce our market position and ensure that Agra continues to be a trusted partner in advancing Namibian agriculture,” the company said.
For the financial year ending 31 July 2024, Agra said it faced unprecedented challenges, primarily due to the ongoing drought, which tested its operations and the Namibian agricultural foundation.
Agra experienced an increase of 8.3% in total turnover, rising from N$2.4 billion in the 2022/23 financial year to N$2.6 billion in the 2023/24 financial year.
Gross profit also rose by 7.2%, increasing from N$475.4 million to N$510 million during the same period. Growth was particularly evident in the retail and wholesale, auctions, and property divisions.
However, the severe drought has adversely affected the disposable income of Agra’s key customer base, notably decreasing the revenue in key higher margin categories.
Total expenses for the group increased by 20.5%, up from N$340.7 million in 2022/23 to N$410.7 million in 2023/24, as pressure on the debtors’ book led to increased non-performing loan expenses, of which the total impact was N$17.3 million for the 2023/2024 year.
The group’s total comprehensive income saw a 21.9% reduction, from N$94.1 million to N$73.5 million.
Despite these challenges, Agra’s total equity increased to N$701 million, and the net asset value per share rose from N$6.29 to N$6.86.
“Similarly, Agra’s share price increased from N$3.06 to N$3.67, and Agra has continued consistent dividend payouts since 2017. Agra continues to adapt to economic and environmental obstacles, committed to building a stronger future for Namibian agriculture,” the company said.
Agra said it has long stood as a symbol of resilience and dedication to Namibian agriculture. Over the past four decades, the company has built a legacy of trust and growth, adapting to the evolving needs of the agricultural, commercial, and trade sectors.
“Our commitment to supporting producers and entrepreneurs remains at the heart of our success,” Agra said.
