4th Nov 2013 11:05
LONDON (Alliance News) - Agriterra Limited Monday said its pretax loss widened in its full year on increased costs, but gains from the sale of its oil and gas operations gave the company significant net profit.
The pan-African agricultural company with established beef, cocoa and maize trading operations said its pretax losses widened to USD7.9 million for the twelve months ended May 31 from USD6.9 million the previous year.
Agriterra said it made an overall net profit, attributable to shareholders of USD20.9 million compared to a net loss of USD6.2 million the previous year as the company profited from the reversal of impairments from its discontinued oil and gas activities. The company completed the disposal of its oil and gas interests in Ethiopia on January 17, realising a post-tax gain of USD29.4 million.
The company said its revenue increased 53% to USD21.2 million from USD13.8 million the previous year as its revenue from beef operations more than doubled during the year and its maize division sales increased 61%.
However, the cost of sales at Agriterra increased to USD18.6 million from USD11.9 million and its operating expenses increased to USD10.8 million from USD9.2 million as the company expanded its ranching and cocoa trading operations
The company also said it was hit by an increased finance cost of USD689,000 compared to USD164,000 the previous year.
Agriterra shares were up 6.3% to 2.35 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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