Lower numbers of animals marketed in 2019/2020 results in slump in Agra auction figures
The significantly lower numbers of animals marketed led to the decrease of Agra Auctions from N$67.3 million in 2018/2019 down to N$55.8 million in 2019/2020.
The agricultural retail giant, Agra Group said this during the announcement of its financial results for the year ended 31 July 2020. This decrease in reflected in Agra’s auctions department was consequently mainly due to the rebuilding of breeding stock and weaner exports.
The Group however noted that the N$11.5 million shortfall in auctions was made up by the Retail & Wholesale division, who did so through diversification.
Agra’s total turnover for the Agra Group increased by 3.1% (1.1% above inflation), which translates to N$1 787 million, compared to the previous year’s reported N$1 734 million.
The operating expenses for the group increased from N$304.7 million in 2018/2019 to N$309.5 million in 2019/2020, an inflationary related increase of 1.6%, while its cash flow has improved by N$69 million, largely because of several strenuous working capital improvement strategies.
Piet Stoman Jr, Agra’s Communication Manager said a large contributor to the improved cash position was the disinvestment in Hartlief, combined with the continued efforts to improve working capital.
“The Group managed to reduce stock holding, without causing stock outages by N$47 million, down to a carrying amount of N$264 million. This added to the reduction of Trade and other receivables which decreased by N$28.4 million resulting in a positive Cash flow for the year under review,” Stoman said.
Stoman added that the Group has selected to continue to invest in its infrastructure, increasing its Property, Plant & Equipment value by N$30.7 million, which consisted of additions of N$38 million less depreciation and disposals. This investment was largely funded by re-financing already existing borrowing facilities.
Agra Group’s Nett Asset value saw a per share of increase of N$0.24.