Agra turnover increases by 10.3%

The total turnover for the Agra Group increased by 10.3% - from N$1.810 billion in the 2021/2022 year to N$1.997 billion in the 2021/2022 financial year.

According to Agra, this growth can be attributed to its increased market share and fuel distribution expansion.

Another notable performance was attained by Agra Auctions, with an increase in gross profit of 15.9% (N$10.3 million) from N$64.7 million in 2020/21 to N$75 million in 2021/22.

It said while auction prices per head have remained fairly consistent since the previous financial period, an 11% increase in livestock numbers marketed during the period under review contributed to favourable results due to an increase in market share.

Increased revenue had a direct positive impact on the gross profit achieved, it added.

This increased by 9.1% from N$397 million in 2021/2022 to N$433 million in 2021/2022.



Good returns

Meanwhile, operating expenses increased from N$308 million in 2020/2021 to N$330 million in 2021/2022, which is an inflationary related increase of 7.1%. The net effect on Agra's overall performance was a 25% increase in profit for the year, from N$60 million in 2020/2021 to N$75 million in 2021/2022.

“We are committed to offering good returns to all our investors, while creating opportunities for employment and industry development. We believe in the future of Namibia and the future of agriculture. We will continue to manage our operations and our investments in a way that we can contribute sustainably to Namibia," the group said in a statement.

"As we reached another milestone with a second consecutive record financial year, it is important to note that any success we might enjoy is merely an opportunity for us to further expand, improve and innovate in order to get us closer to achieving our goal of offering every Namibian the opportunity of a better life."

Agra, however, said that its core market is likely to face financial strain over the next financial year due to escalating fuel prices and the general rise in inflation.

“This will be compounded by the lack of availability of certain raw materials essential for the manufacturing of farming inputs, as well as escalating interest rates.”