26th Feb 2014 10:49
LONDON (Alliance News) - Agriterra Ltd Wednesday said its pretax loss significantly narrowed in its first-half as lower costs offset a fall in revenues.
The pan-African agricultural company with established beef, cocoa and maize trading operations said its pretax loss halved to USD2.1 million for the six months ended November 30, from USD4.2 million the previous year, despite a 37% fall in revenues to USD7.2 million from USD11.5 million the previous year.
The company said its fall in revenues was due to lower maize and cocoa sales volumes as the company focuses on developing operations in order to achieve strong production and revenues in the coming years.
However, Agriterra said its cost of sales fell 35% to USD6.4 million in the first-half from USD9.9 million the previous year as margin improvement in its grain business and positive impact in its beef business at both its retail units and the organic growth in its herd, helped the company's costs.
The company said it expects revenues to ramp up with investment programmes continuing, delivering enhanced financial performance moving forward.
Agriterra shares were up 1.7% to 2.11 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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