Seed Co Limited revenue is forecast at US$72,42 million for the current financial year (FY2026), representing a 2 percent projected increase from US$71,21 million in 2025, driven mainly by maize seeds and soya categories.

Stockbroking and equities research firm IH Securities, in its review of Seed Co financials, said the group’s sales volumes benefited, as regional demand improved post the El Niño drought in the prior season and transitioned into the La Niña, borrowing well for agriculture.

“We forecast a 2 percent increase in revenue on volume increases in the maize seeds and soya categories, while the winter cereals segment is expected to subdue growth via contraction,” IH said.

IH noted that aggregate sales volumes rose 52 percent year on year from FY24 as maize and soya seed sales volumes grew 91 percent and 59 percent, respectively.

“There were record exports, which made up 33 percent of the volume, generating much-needed foreign currency while reducing local exposures.

“All segments saw volume growth except for the barley segment, which saw reduced off-take orders. Notably, volume growths were recorded in wheat and small grain seeds as farmers responded to the effects of climate change,” reads part of the review report.

IH highlighted that the local open market sales contributed 23 percent to volumes in the period, and this was supported by expansion measures such as a new shop opening in Kwekwe and the deployment of 4 container outlets, as well as sixteen rented tills in various retailers. Business from the Government accounted for 44 percent of sales in the period.

“As per the company, 98 percent of revenue was denominated in US dollars, with 68 percent of invoices expected to be settled in US dollars,” IH said.

IH said that as the export market continues to grow, the business focus should be to sustain external US dollar-denominated revenue in the quest to subdue potential local currency volatility.

“Research and development, including colour sorting technology and cleaning mechanisation, continue to be key points of commitment in seed variety and production,” said IH.

IH, on the other hand, cautioned that the group’s high exposure to the public sector, which remains the mainstream of the business, will continue to be a significant risk, as it exposes the business to the vagaries of government, which can dampen the predictability of collections, thus inducing more debt and hampering cash flows.

“In our view, given the elevated receivables at US$52,10 million vis-à-vis the cash flow position of US$0,31 million suggests underlying liquidity stress, and it will be important to see how this unwinds going forward,” reads part of the report.

Seed Co Limited group chief executive, Mr Morgan Nzwere, recently said the company has a strong pipeline of new products under its research and development (R&D) in response to climate change, which continues to impact the various markets it operates in.

Africa, where the group’s operations span, has increasingly been vulnerable to extreme weather events, which have had negative impacts on agriculture, crop yields and seed varieties.

He noted that maize remains the company’s anchor product, and revenue growth was in line with volume growth, with maize contributing 68 percent and wheat 15 percent of revenue.