Namibia's Agra posts results supportive of intended expansion
Economist.com.na - Jan 13th 2014, 09:00
Agra’s first annual report as a public company shows the former cooperative is in a financial position strong enough to support its expansion programme. CEO Peter Kazmaier announced that Agra achieved satisfactory financial results for the year ending 31 July 2013, despite very difficult circumstances.
Agra achieved a gross group turnover of N$1,8 billion, a decrease of 1,6% compared to the previous financial year. Net profit before taxation for the group however improved by 3% from N$44,4 million in 2012 to N$45,9 million in 2013. Net profit after taxation for the group remained virtually constant from N$31,4 million in 2012 to N$31,3 million in 2013.
The retail and wholesale division of Agra comprising the Agra branches, Auas Wholesalers and Auas Vet Med reported an improvement in turnover from N$875,5 million in 2012 to N$1 022 million in 2013, an increase of 16,8%.
The net operating surplus before head office costs increased by 17,4%. Turnover in the livestock division declined, mostly as a result of a decrease in the average price per head in all categories despite the fact that volume turnover increased.
Gross income in Agra’s property division increased from N$19,6 million in 2012 to N$21 million in 2013 and the operating surplus by 4%.
Agra’s Arms, Ammunition and Outdoor division was established during April 2013, consisting of Safari Den and will include the Rosenthal Group of Businesses as from 1 August 2013. The turnover for this division increased from N$25,1 million in 2012 to N$27,3 million in 2013 and net profit before head office costs increased by 4%.
Kazmaier listed the major upgrade of the Auas Valley Shopping Mall, the building of the new Agra branch in Lafrenz and the construction of a new branch building for the Opuwo branch as major capital projects for the new financial year.
The Chairman of Agra, Ryno van der Merwe mentioned in his report the current factors affecting farming and consequently Agra’s business. He said: “The below average rainfalls and consequent drought in Namibia will remain in the minds of all for a long time.
The decrease of 30% in livestock prices, bad harvests for agronomists and additional costs of animal feeds and licks puts immense pressure on the cash flow of producers. The effect of a loss in income and the additional cost of emergency marketing will most probably only be felt in 2014
Agra is duly aware of this critical situation the producers find themselves in and the possible impact it might have on our business in the near future.”Kazmaier also stated that “The year ahead will definitely be one of the most challenging periods,” and he highlighted the factors that will have an impact which are: the drought which has a dramatic impact on the turnover generated by Agra’s largest customer base; the capital projects which all started during the 2013/14 financial year; lower than normal turnover prospects due to customer inconvenience during the Windhoek and Opuwo construction periods and lower prices achieved for livestock; an increase in the inflation rate including cost escalation in the price of fuel, feeds and licks and continuous pressure on higher salaries and benefits.
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