Agra profit declines minimally
Agra chief executive officer Arnold Klein is expecting challenging times ahead but is relishing the challenge.
Agra continued to perform well in the half-year ended 31 January 2017. Net profit after tax was N$14.8 million, but it reported a 13% (N$2.1 million) decrease in profits.
“Authorised capital expenditure for the 2017 financial year amounted to N$55 million, of which N$30 million was contractually committed to by the end of 31 January 2017. Finance will be provided via cash generated through the group´s operating activities,” according to Agra CEO Arnold Klein.
The earnings per share, as well as the headline earnings per share, were 14.4 cents per share. No dividend was declared during the period. Said Klein: “Namibia's economy going through a technical recession, defined by negative Gross Domestic Product growth for two successive quarters, added to the ongoing challenging drought conditions, were negatively impacting the agricultural sector for the period under review.
“Agra managed to prevent a decline in growth and managed to defend the group's revenue with a slight increase of 1% for the first six months up to January 2017, compared to the same period the previous year.
“Without backing down from Agra's philosophy to support the farming sector, even through tough times, Agra has intensified its credit-control policies, especially on its Auctions business, to protect its shareholders' investment from the increased risk as a result of the more stringent export regulations to South Africa which were introduced from July 2016. These regulations caused a further short-term decrease in revenue for the first half of the period under review.”
Operating costs increased by 3%, which is less than inflation. Revenue remained rather static, resulting in a decrease in operating profit from N$37.5 million in 2016 to N$32.9 million in 2017.
“We are expecting challenging times to persist for the foreseeable future, but the Agra board and management remain positive that the recent widespread rains will have a positive impact on the agricultural sector, housing our largest clientele,” Klein said.
STAFF REPORTER
“Authorised capital expenditure for the 2017 financial year amounted to N$55 million, of which N$30 million was contractually committed to by the end of 31 January 2017. Finance will be provided via cash generated through the group´s operating activities,” according to Agra CEO Arnold Klein.
The earnings per share, as well as the headline earnings per share, were 14.4 cents per share. No dividend was declared during the period. Said Klein: “Namibia's economy going through a technical recession, defined by negative Gross Domestic Product growth for two successive quarters, added to the ongoing challenging drought conditions, were negatively impacting the agricultural sector for the period under review.
“Agra managed to prevent a decline in growth and managed to defend the group's revenue with a slight increase of 1% for the first six months up to January 2017, compared to the same period the previous year.
“Without backing down from Agra's philosophy to support the farming sector, even through tough times, Agra has intensified its credit-control policies, especially on its Auctions business, to protect its shareholders' investment from the increased risk as a result of the more stringent export regulations to South Africa which were introduced from July 2016. These regulations caused a further short-term decrease in revenue for the first half of the period under review.”
Operating costs increased by 3%, which is less than inflation. Revenue remained rather static, resulting in a decrease in operating profit from N$37.5 million in 2016 to N$32.9 million in 2017.
“We are expecting challenging times to persist for the foreseeable future, but the Agra board and management remain positive that the recent widespread rains will have a positive impact on the agricultural sector, housing our largest clientele,” Klein said.
STAFF REPORTER
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