Drought-risk makes Agra tread lightly
Agra also added major upgrades and additional development to its 4500m² Opuwo retail branch.
Boer emphasised that other operational divisions performed well and contributed to the positive financial results.
She said that these new investments will generate more revenue, mentioning that interest charges in the first few years have a bigger impact than closer to redemption. “We are confident that an improvement in the debt to equity ratio will be achieve towards the end of the financial year” she responded.
Agra’s livestock division ;posted an increase of 10% despite the number of animals marketed staying the same year-on-year. This was on the back of higher unit prices.
Turnover from the livestock business grew to N$31.7 million from N$28.8 million. The net operating surplus before head office costs of the livestock division decreased from N$6.0 million in 2013 to N$4. 7 million in 2014. “[We will] ensure that economies of scale are utilised fully with increasing turnover, and broaden the base of our activities by investing in non-agricultural dependent ventures,” Boer said.