The Agra Group’s revenue increased by 15 percent, from N$1.368 billion in 2014/15 to N$1.577 billion in 2015/16, while the turnover of Agra Limited increased by 16 percent from N$1.273 billion in 2014/15 to N$1.476 billion in the 2015/16 financial year.
Agra’s growth in sales is reflected in the increase of the gross profit that increased by 11 percent, 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.
“The current drought which persisted in various parts of Namibia since 2013, has resulted in critical production conditions in vast areas of the country,” Ryno van der Merwe, the chairperson of Agra’s Board of Directors, said at Agra Limited’s 6th Annual General Meeting (AGM) on Friday, December 2.
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,” he noted.
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, such as the new Agra Hyper 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 by 12 percent from N$38 million in 2014/15 to N$43 million in 2015/16, an increase.
Agra CEO Arnold Klein reported that Agra’s continued efforts to optimise efficiency, utilising synergies to contain operating expenses, resulted in the Group’s operating costs increasing by only 5.5 percent from N$253.3 million in 2014/15 to N$267.2 million in 2015/16, an inflation 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 percent to 20.9 percent” said Klein.
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 concluded with the election of directors retiring by rotation, in accordance with the company’s Articles of Association.
Agra bid farewell to Peter Schonecke and welcomed Benny Amuenje as a new board member.
Schonecke was congratulated for his input and contributions over the years that helped to build Agra to where it is now. Jesko Woermann was re-elected to serve for another term.
The Agra Board of Directors include Ryno van der Merwe (chairperson), Ben Mouton, Benny Amuenje, Stephan von Seydlitz, Jan Visagie, Jesko Woermann and Leon van Wyk.