Agra anticipating financial strain

Chamwe Kaira

Agra Limited is anticipating financial strain next year due to factors such as escalating fuel prices, rising inflation, and challenges associated with sourcing essential farming input materials.

Additionally, the company said the prevailing high-interest rate environment adds complexity to the equation.

“Our assessment also encompasses meteorological influences and a continued focus on enhancing credit control practices. We remain vigilant about potential supply chain disruptions caused by load shedding, impacting South African producers, which could lead to fluctuations in availability,” the company said in financial results for the period ended 31 July 2023.

The company said although the challenges are real, it remains cautiously optimistic about the future.

“We are dedicated to supporting our core clientele as we navigate through these circumstances in the 2023/24 fiscal year.”

In the past fiscal year, Agra’s share price increased by 26.4%. Agra witnessed a substantial increase of 23.1 percent in total turnover.

“This remarkable growth can be attributed to Agra’s expansion in fuel distribution and an enhanced market presence, which can be directly linked to the fruitful outcomes of Agra’s consistent investments in infrastructure.”

Agra’s increased revenue did have a positive impact on our gross profit, marking a 9.6% rise from N$433.9 million in 2021/22 to N$475.4 million in 2022/23.

Operating expenses recorded a modest 3 percent increase, moving from N$329.8 million in 2021/22 to N$339.7 million in 2022/2023, which is below the Namibian inflation rate of 4.5 percent. This can be attributed to our firm commitment to cost control, as well as a N$12.3 million employer fund contribution holiday that Agra capitalised on.

The net impact on Agra’s overall performance was a notable 22.8 percent increase in profit after tax for the year, increasing from N$75 million in 2021/22 to N$92.1 million in 2022/23, and a total comprehensive income for the year of N$94.1 million, compared to N$77.2 million during the previous year.

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