24th Dec 2020 13:39
(Alliance News) - African agricultural company Agriterra Ltd on Thursday reported a narrowed full-year loss and said that the pandemic has made the start of its new financial year "challenging".
Revenue for the financial year that ended March 31 rose 22% to USD12.9 million from USD10.6 million, with the firm's pretax loss narrowing to USD3.0 million from USD3.3 million the year before.
Agriterra said its two arms, beef and grain, have built strong brands in Mozambique.
"The management team are focussed on improving the overall performance of both businesses and to take the necessary actions that will get the beef operation to a point where it becomes a contributor towards the overall success of the company," the company said.
Turning to the current financial year, Agriterra said it had a difficult start due to Covid-19, resulting in a "challenging" first quarter for both the grain and beef operations.
The firm said that while the business backdrop has been hurt by the pandemic, Covid-19 has not yet spread significantly in Mozambique.
"Our products, meal and beef, are key staples in the domestic Mozambican market and although demand is not expected to be significantly affected as the pandemic increases, there are potential short term risks associated with the availability of cash in the market, as companies in the tourism, services, logistics and extractives sectors are forced to reduce the staffing, until things normalise," said Agriterra.
Shares in Agriterra were untraded in London on Thursday, last quoted at 6.0 pence.
By Lucy Heming; [email protected]
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