Difficult trading conditions reflect in Agra’s interim results
In the face of persistent economic challenges in the Namibian economy, Agra Ltd still managed an operating profit of nearly N$42 million for the interim period ended 31 January 2024
In the corresponding period in 2023, the over-the-counter trading agricultural coop posted an operational profit of nearly N$51 million and in 2022 nearly N$44 million.
Upon release of the interim results, Agra said “Despite falling slightly below the performance during the comparative period in 2023, we remain encouraged by the projected rebound of Namibia’s expected GDP trajectory, largely driven by the mining sector. The severe drought exacerbates financial constraints for our primary clientele, the farming community, compounded by livestock prices that are significantly lower than last year.”
Revenue increased by 4.4% from N$1.3 billion in 2023 to almost N$1.4 billion in 2024 when compared to the same period. 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.
Part of the slightly better performance is based on the contribution from a new branch in Okahao and a 24-hour fuel station in Mariental.
Operating expenses increase by 12.3% from N$185.1 million in 2023 to N$208 million in 2024, reflecting in part the cost of expansion and investment in infrastructure.
“Despite the challenging operating environment, Agra remains committed in implementing our strategic initiatives focused on cost optimization. Through rigorous cost control measures and prudent financial management, we are determined to navigate these challenges while upholding our commitment to progress and sustainability,” the coop said in a statement announcing the interim results.
The full results can be viewed at https://senspdf.jse.co.za/documents/2024/nsx/isse/agr/AGR31Jan24.pdf or on Agra’s website at www.agra.com.na/about-agra/financial-results.php .
