2020 AGRA INTEGRATED REPORT
2020 AGRA INTEGRATED REPORT
Published: 30 Oct 2020 AUDITED CONSOLIDATED GROUP FINANCIAL RESULTS for the year ended 31 July 2020
Group financial performance:
When reviewing Agra’s performance, it is important to note the Namibian economic climate for the period under review. The local economy has been challenged severely over the past few years and this was exacerbated further this year due to the global COVID-19 pandemic.
The total turnover for the Agra Group increased by 3.1% (1.1% above inflation in the 2019/2020 financial year), which translates to N$1 787 million, compared to the previous year’s reported N$1 734 million. This was reflected in a similar growth in gross profit. It must be noted that the contribution brought on by the Auctions department has decreased from N$67.3 million in 2018/2019 down to N$55.8 million in 2019/2020, as a result of lower numbers of animals marketed, mainly due to the rebuilding of breeding stock and weaner exports which has shown a significant decrease compared to the previous year. This N$11.5 million shortfall was made up by the Retail & Wholesale division, who did so through diversification.
The operating expenses for the group increased from N$304.7 million in 2018/2019 to N$309.5 million in 2019/2020, an inflationary related increase of 1.6%.
Finance costs of the group decreased from N$29.8 million in 2018/19 to N$28.3 million in 2019/20.
All of the factors mentioned above resulted total comprehensive income of N$24.4 million in 2018/19 up to N$28.9 million for the current year under review, which is an increase of 18.4%. 2020 2019 2018 (audited) (audited) (audited) Revenue (N$’000) 1 787 307 1 733 692 1 551 273 Operating profit (N$’000) 61 678 57 875 74 638 Profit after tax (N$’000) 26 840 24 035 31 690 Total Comprehensive Income (N$’000) 28 889 24 402 32 211 Basic earnings per share (cents) 24.79 23.74 31.15 Net asset value per share (N$) 4.32 4.08 3.90 Final Dividend per share (cents) 5.00 4.00 5.90
The Group’s cash flow has improved by N$69 million, largely because of several strenuous working capital improvement strategies.
A large contributor to the improved cash position was the disinvestment in Hartlief, combined with the continued efforts to improve working capital. The Group managed to reduce stock holding, without causing stock outages by N$47 million, down to a carrying amount of N$264 million. This added to the reduction of Trade and other receivables which decreased by N$28.4 million resulting in a positive Cash flow for the year under review.
The Group has however selected to continue to invest in its infrastructure, increasing its Property, Plant & Equipment value by N$30.7 million, which consisted of additions of N$38 million less depreciation and disposals. This investment was largely funded by re-financing already existing borrowing facilities.
The Nett effect of these factors caused an increase of the Nett Asset value per share of N$0.24 per share.