Chamwe Kaira
Agra Limited has told shareholders that the company’s profit after tax, basic earnings per share, and headline earnings per share for the year ended July 31, 2025, are expected to increase by between 53% and 59% compared to the prior period.
“This improvement follows a challenging prior year, shaped by strategic investments in expanding Agra’s footprint and upgrades to retail branches, as well as the impact of a prolonged drought. These investments are now bearing fruit, contributing to improved operational efficiency,” the company said.
Agra stated that the improved rainfall across the country has provided essential relief to the agricultural sector.
sector, allowing farmers to begin recovering and reconnecting with the market.
Agra also benefited from the recovery of previously written-off debts, which contributed positively to this year’s profit. The final results will be released on 24 October.
In comparison, in 2024 Agra experienced a notable increase of 8.3% in total turnover, rising from N$2.4 billion in the 2022/23 financial year to N$2.6 billion in the 2023/24 financial year. Gross profit also rose by 7.2%, increasing from N$475.4 million to N$510 million during the same period. Growth was particularly evident in the Retail and Wholesale, Auctions, and Property divisions.
However, the severe drought adversely affected the disposable income of Agra’s key customer base, notably decreasing the revenue in key higher-margin categories in 2024.
Additional pressures were experienced on the debtors’ book of Agra, with non-performing loans increasing as a result. Total expenses for the group surged by 20.5%, increasing from N$340.7 million in 2022/23 to N$410.7 million in 2023/24. During the year, bad debts totalling N$12.5 million were written off, and an additional N$4.8 million was provisioned as part of the Expected Credit Losses (ECL) as prescribed by IFRS 9 requirements.
Employee costs rose by 17.5% from N$196.5 million in 2022/23 to N$230.8 million in 2023/24, with N$12.3 million attributable to the employer pension fund contribution holiday from the previous year that has not continued in the 2023/24 financial year.
As a result, the group’s operating profit declined by 24.1%, dropping from N$142.5 million in 2022/23 to
N$108.1 million in 2023/24. The net impact on the Agra Group’s overall performance was a 19.9% decrease in profit after tax for the year, reducing from N$92.1 million in 2022/23 to N$73.7 million in 2022/23, and a total comprehensive income for the year of N$73.5 million, compared to N$94.1 million during the previous year, totalling a 21.9% decrease.
Caption
Agra’s profit is expected to increase by 59%.
- Photo: Agra
