Agra reports N$2.6bn in revenue
Agra has long been a beacon of strength and dedication to the agricultural landscape of Namibia. Over the past 40 years, the cooperative has established a legacy built on trust and growth, continuously adapting to meet the changing demands of the agricultural, commercial and trade sectors.“Our dedication to supporting producers and entrepreneurs lies at the core of our achievements. For the financial year ending 31 July 2024, we encountered unprecedented challenges primarily due to the persistent drought, which tested both our operations and the foundational aspects of Namibian agriculture,” Agra said.
In terms of financial performance, the company reported an 8.3% increase 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 saw a notable rise of 7.2%, climbing from N$475.4 million to N$510 million during this period. This growth was particularly pronounced in the retail and wholesale, auctions and property divisions.
However, the severe drought has had a detrimental effect on the disposable income of Agra's primary customer base, leading to a significant decline in revenue from key high-margin categories. "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. This rise in expenses was largely attributed to pressures on the debtors’ book, resulting in increased non-performing loan costs totaling N$17.3 million for the 2023/24 year," it said.
Meanwhile, employee costs also escalated by 17.5%, growing from N$196.5 million in 2022/23 to N$230.8 million in 2023/24. This increase included N$12.3 million related to an employer pension fund contribution holiday from the previous year that was not carried over into the current financial year. As a result, Agra’s operating profit fell by 24.1%, decreasing from N$142.5 million to N$108.1 million. Profit after tax experienced a decline of 19.9%, dropping from N$92.1 million to N$73.7 million, while total comprehensive income for the group saw a reduction of 21.9%, from N$94.1 million to N$73.5 million.
"Despite facing these challenges, Agra's total equity increased to N$701 million, with net asset value per share rising from N$6.29 to N$6.86. The company's share price also grew from N$3.06 to N$3.67, and Agra has maintained consistent dividend payouts since 2017. The cooperative continues to adapt to economic and environmental challenges while remaining committed to fostering a stronger future for Namibian agriculture.
Looking ahead to the upcoming fiscal year, Agra said it is acutely aware of the ongoing severe drought and its ramifications for the agricultural sector. The cooperative is dedicated to overcoming these challenges by implementing strategic measures that enhance support for producers and bolster operational resilience, it noted.