Agra’s revenue for 2019 strong despite drop in profit

Agra Limited recorded a positive growth in its market share through the diversification of its product range and services offered, resulting in an increase in the group's revenue by 11,8 per cent.

Agra announced in its Audited Consolidated Group Financial Results for the year ended 31 July 2019, published on the Namibia Stock exchange website on Monday that its revenue stood N.dollars 1.7 billion in revenue during the financial year ended 31 July 2019.

This is an increase of N.dollars 182.4 million from N.dollars 1.5 billion in July 2018.

'This did not transcend directly into the same increase in gross profit, as the gross profit for the group came under pressure due to an increase in the proportion of low margin product sales, such as animal feed products,' the group said.

The group's operating profit stood at N.dollars 57.8 million, an increase of N.dollars 16.7 million from N.dollars 74.6 million in July 2018.

Profit after tax also decreased by N.dollars 7.7 million from N.dollars 31.7 million in 2018 to N.dollars 24 million in 2019. The decrease was attributed to the current economic conditions and worst drought experiences in recent history.

'It is imperative that the country receives above average rains and that the current producer prices drastically increase to enable the agricultural sector to recover,' the group stated.

Agra's headline earnings per share (HEPS) also dropped in July 2019 to 23.78 cents per share when compared to 34.02 cents per share in July 2018.

Source: Namibia Press Agency