AGRA REPORTS STRONG FINANCIAL, DESPITE DROUGHT CHALLENGES
Published: 09 Dec 2016

“The current drought which persisted in various parts of Namibia since 2013, has resulted in critical production conditions in vast areas of the country. Amidst the unfavourable economic and climate conditions, and the more stringent export regulations of livestock to the Republic of South Africa, Agra achieved a remarkable net profit before tax of N$47.751 million, for the financial year ending July 2016.” These were the opening remarks of Mr Ryno van der Merwe, Chairperson of Agra’s Board of Directors at Agra Limited’s 6th Annual General Meeting (AGM) held on Friday, 2 December 2016.

The Group’s revenue increased by 15%, from N$1,368 million in 2014/15 to N$1,577 million in 2015/16, whereas the turnover of Agra Limited increased by 16% from N$1,273 million in 2014/15 to N$1,476 million in the 2015/16 financial year. Agra’s growth in sales is reflected in the increase of the gross profit that increased by 11%, from N$276 million in 2014/15 to N$307 million in 2015/16 for the company, and from N$ 297 million up to N$ 330 million for the Group, respectively.

Finance costs of the Group increased from N$12.1 million in 2014/15 to N$32 million in 2015/16, mainly as a result of interest on loans to finance capital projects, i.e. the new Agra Hyper @ Lafrenz property investment, the upgrading of the Auas Valley Shopping Mall, as well as the new Agra Opuwo branch. Despite the increase in finance costs, the Group’s net profit after tax for the year increased from N$38 million in 2014/15 to N$43 million in 2015/16, an increase of 12%.

Agra’s Chief Executive Officer (CEO), Mr Arnold Klein reports that Agra’s continued pursuit to optimise efficiency, utilising synergies to contain operating expenses, resulted in the Group’s operating costs only increasing by only 5.5% from N$253.3 million in 2014/15 to N$267.2 million in 2015/16, an inflationary related increase that was much less than the operational growth achieved. “This allowed us to decrease our mark-up on animal feeds and licks to support the farming industry in this time of need, which resulted in the Group’s Gross Profit as a percentage of revenue decreasing from 21.8% to 20.9%” said Mr Klein.

Mr Klein, in his final remarks said: “Agra is confident in the future of Namibia and therefore positively contributes significantly to the growth and development of this country. Agra aims to persistently create employment which alleviates poverty, and improves the quality of life and thereby contribute towards the President’s endeavours of building the Namibian house.”

The AGM was concluded with the election of directors retiring by rotation in accordance with the Company’s Articles of Association. Agra bid farewell to Mr Peter Schonecke, and welcomed Mr Benny Amuenje as a new board member. Mr Schonecke was congratulated for his inputs, sacrifices and contributions throughout the years that helped to build Agra to where it is now. Mr Jesko Woermann was re-elected to serve for another term.

The Agra Board of Directors are: Ryno van der Merwe (Chairperson), Ben Mouton, Benny Amuenje, Stephan von Seydlitz, Jan Visagie, Jesko Woermann and Leon van Wyk. Mr van der Merwe, thanked the Agra Board of Directors for their continued loyalty to Agra and the serious manner in which they undertake their responsibility towards the company.