By Staff Reporter
WINDHOEK – A total gross turnover of N$1.98billion for the group and three major capital expenditure projects are proof of the positive results Agra Limited achieved for the 2013/2014 financial year despite a year that Agra’s CEO, Peter Kazmaier, in his report describes as “definitely one of the more challenging and at times frustrating”. The total comprehensive income, which amounted to N$28.3 million, exceeds Agra’s forecast and budget by N$8.8 million.
Net turnover for the group increased by 12 percent. Net profit before tax for the group increased by 7. 2 percent, from N$45. 9 million in 2013 to N$49. 3 million in 2014. Net profit after tax for the group improved by 7. 8 percent from N$31. 3 million in 2013 to N$33. 7 million in 2014.
The three major capital expenditure projects Agra embarked on to ensure future growth and sustainability of the group include the construction of a brand new branch in Opuwo; incorporating some of the structures of the existing branch; the construction of Agra’s flagship Windhoek branch in the Lafrenz Industrial Area and major upgrade of the Auas Valley Shopping Mall.
Agra’s retail and wholesale division reports an improvement in turnover from N$1 022 million in 2013 to N$1 160 million in 2014, an increase of 14 percent. Gross profit for this division increased from N$134. 6 million in 2013 to N$141. 6 million in 2014, an increase of 5 percent. This division comprises the Agra retail branches, Auas Wholesalers and Auas Vet Med.
The livestock division achieved net turnover of N$31. 7 million compared to N$28. 8 million in 2013, an increase of 10 percent. The number of animals marketed remained virtually the same, but turnover increased for both producer and Agra as a result of higher unit prices in all categories.
Kazmaier mentioned a large credit risk for the organisation due to the informal way in which the livestock industry operates, bad debts that had to be written off and stringent veterinary regulations as major factors affecting the income of the livestock division. The net operating surplus before head office costs of this division decreased from N$6.0 million in 2013 to N$4. 7 million in 2014.
Agra’s new division, Agra Arms Ammunition and Outdoor achieved a turnover of N$100. 4 million in 2014, compared to N$27. 3 million in 2013.
This major increase in turnover comes as a result of the inclusion of the Rosenthal Group in the operational figures.
The Arms, Ammunition and Outdoor division was established during April 2013 consisting of Safari Den and as of August 1 2013 includes the Rosenthal Group.
Net profit before head office costs for this division increased from N$4.8 million in 2013 to N$7.9 million in 2014, an increase of 65 percent.
The ProVision division continued to grow its activities in all subdivisions including consultancies, training and development, applied research, Swakara services and strategic partnerships and managed to conclude the year by achieving a net surplus of N$440 000 for the year under review.
With regard to the income from the marketing of Swakara through this division, a turnover of N$73.9 million was realised from the 123 462 Swakara pelts that were sold during the September 2013, April 2014 and June 2014 auctions. The number of pelts marketed increased by 1. 2 percent, compared to 121 980 pelts sold during the year ending July 2013.
Unit prices per pelt decreased from an average of N$679.44 in the previous financial period to an average of N$599.04 in 2014. This represents a decrease of 11. 8 percent, a contraction attributed mainly to the decrease in international pelt prices.
The chairman of Agra’s board, Ryno van der Merwe also stated in his report that the large projects that Agra is currently undertaking requires “careful cash flow and time management from the operational teams driving the implementation, but the anticipated successes are worth the efforts”.
Concluding his report, Kazmaier expressed the hope that the coming year will offer good rains and stated that Agra with its large investments in property will have to ensure that the necessary cash flow is generated from these investments.
He is however very positive about the year ahead, as he states: “All in all a very exciting year ahead of us with various opportunities, but also increasing competition in all markets in which Agra operates. We are looking forward to being of service to all our stakeholders in the years to come.”
Chairman van der Merwe is also very positive about Agra and said: “Agra is a very strong Namibian brand that is highly regarded among the local and international public. Marketing efforts continue to support and maintain the current market share and existing customer base. The Agra of today is ever expanding and diversifying its business portfolio. New investments are made to expand, improve and add value to Agra’s products and services as well as to attract a more diverse customer base.
Putting customers first is key to our marketing strategy, and our sales and service teams work tirelessly to deliver for our customers, who are at the heart of our brand.”