WINDHOEK – In his first annual report as the Chief Executive Officer of Agra Limited for the year ending July 31, 2013 following Agra’s conversion from a cooperative to a public company, Peter Kazmaier announced that Agra achieved satisfactory financial results for the year despite very difficult circumstances.
Agra achieved a gross group turnover of N$1,8 billion, a decrease of 1,6 percent compared to the previous financial year. Net profit before taxation for the group however improved by 3 percent from N$44,4 million in 2012 to N$45,9 million in 2013. Net profit after taxation for the group remained virtually constant from N$31,4 million in 2012 to N$31,3 million in 2013.
The retail and wholesale division of Agra comprising the branches Auas Wholesalers and Auas Vet Med reported an improvement in turnover from N$875,5 million in 2012 to N$1 022 million in 2013, an increase of 16,8 percent. The net operating surplus before head office costs increased by 17,4 percent. Turnover in the livestock division declined, mostly as a result of a decrease in the average price per head in all categories despite the fact that volume turnover increased.
Gross income in Agra’s property division increased from N$19,6 million in 2012 to N$21 million in 2013 and the operating surplus by 4 percent. Agra’s Arms, Ammunition and Outdoor division was established during April 2013, consisting of Safari Den and includes the Rosenthal Group of Businesses as from August 1 2013. The turnover for this division increased from N$25,1 million in 2012 to N$27,3 million in 2013 and net profit before head office costs increased by 4 percent.
Kazmaier mentioned the major upgrade of the Auas Valley Shopping Mall, the building of the new Agra branch in Lafrenz and the construction of a new building for the Opuwo branch as major capital projects for the new financial year.
The Chairman of Agra, Ryno van der Merwe, mentioned in his report the current factors affecting farming and consequently Agra’s business. He said: “The below average rainfall and consequent drought in Namibia will remain in the minds of all for a long time. The decrease of 30 percent in livestock prices, bad harvests for agronomists and additional costs of animal feeds and licks put immense pressure on the cash flow of producers. The effect of a loss in income and the additional cost of emergency marketing will most probably only be felt in 2014. Agra is duly aware of this critical situation the producers find themselves in and the possible impact it might have on our business in the near future.”
Van Der Merwe added: “We will ensure that Agra lives up to its name and promise to build sustainable businesses. We would like all to join and share this exciting new world with us by believing, committing to and living our purpose, vision and values. Agra will continue to invest in the Namibian agricultural sector and will also continue its efforts to improve the knowledge and skills in the various agricultural disciplines by providing training, assistance and support through Agra’s ProVision division and our support of agricultural projects and initiatives.” In his concluding remarks, Kazmaier stated: “The year ahead will definitely be one of the most challenging periods,” and he highlighted factors that would have an impact, which are the drought which has a dramatic impact on the turnover generated by Agra’s largest customer base; the capital projects which started during the 2013/14 financial year; lower than normal turnover prospects due to customer inconvenience during the Windhoek and Opuwo construction periods; lower prices achieved for livestock; an increase in the inflation rate including cost escalation in the price of fuel, feeds and licks and continuous pressure on higher salaries and benefits. He however expressed his confidence: “Agra with its dedicated personnel is committed to tackle the challenges of the new financial year and will ensure that our company continues to grow for the benefit of all our stakeholders.”
By Staff Reporter