Agra’s gross profit increases by 9.1%
The Agra Group recorded a 9.1% increase in gross profit from N$368 million in 2019/20 to N$402 million in the 2020/21 financial year.
The company also recorded a relatively small increase in revenue, increasing by only 1.5%, from N$1 787 million in the 2019/20 year up to N$ 1 815 million in 2020/21.
Agra Spokesperson, Piet Stoman said the major contributor to the growth in gross profit, is the increased contribution from the Agra Auctions division. The division contributed N$65.3 million in commission for the year, compared to N$55.8 million in 2020/21, an increase of nearly 17%.
“This was achieved despite a decrease in the number of animals marketed, especially on cattle, which declined by 24%. Although the number of livestock available to market was lower than in previous years, due to the growth cycle that most farmers have entered into, the market price of livestock has been exceptionally good,” Stoman said.
Stoman added that cost-cutting, debt consolidation, favourable financial product negotiations, and cash flow management were the main drivers of the company success.
“While our focus of bringing agriculture into your home, innovations in online and digital offerings, our retail delivery model, as well as the successful operational efficiencies with regards to processes and procedures have served Agra well during the year under review,” Stoman said.
Agra saw an increase in total comprehensive income from N$28.9 million in 2019/20 to N$59.4 million for the current year under review, which is an increase of 105.5%. Its share price increased by 9.1% during the year under review.