Drought causes profit wilt for Agra
Dry revenue growth
Agra Ltd says plans to further diversify its portfolio are underway.
Agra Ltd recorded an operating profit of about N$41.9 million for the six months ended 31 January 2024, a drop of some N$9 million or nearly 18% compared to the same half-year in 2023.“The severe drought exacerbates financial constraints for our primary clientele, the farming community, compounded by livestock prices that are significantly lower than last year,” Agra said in its unaudited interim results released on the Namibian Stock Exchange (NSX) on Friday.
The group’s revenue increased by a mere 4% year-on-year or about N$57 000 year-on-year (y/y) to around N$1.36 million.
“This marginal growth was supported by lower margin product lines that increased by 68.8% in 2024, indicating the pressure on the remaining retail sales,” Agra said.
Operating expenses increase with 12.3% from N$185.1 million in 2023 to N$208 million in 2024, reflecting its commitment to expansion and investment in infrastructure,” the company, which trades over the counter on the NSX, said.
Footprint
Agra expanded its presence, inaugurating a branch in Okahao and adding a 24-hour fuel station in Mariental, with plans underway to further diversify its portfolio.
Total comprehensive income for the period under review came in at nearly N$29.1 million, down nearly 14% y/y.
“Despite the challenging operating environment, Agra remains committed in implementing our strategic initiatives focused on cost optimisation,” the company said.
“Through rigorous cost control measures and prudent financial management, we are determined to navigate these challenges while upholding our commitment to progress and sustainability,” it said.
Agra reported healthy growth of 12.6% y/y in its net asset value (NAV) from N$5.70 per share to N$6.42.
The company closed at N$3.60 per share on the NSX’s OTC on Friday.