Board Change • May 20
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Non-Executive Director Kenias Mafukidze was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Aug 16
Seed Co International Limited, Annual General Meeting, Sep 05, 2025 Seed Co International Limited, Annual General Meeting, Sep 05, 2025. New Risk • Aug 28
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Aug 22
Seed Co International Limited, Annual General Meeting, Sep 13, 2024 Seed Co International Limited, Annual General Meeting, Sep 13, 2024. Declared Dividend • Jul 01
Dividend of US$0.0031 announced Shareholders will receive a dividend of US$0.0031. Ex-date: 29th July 2024 Payment date: 7th August 2024 Dividend yield will be 0.09%, which is lower than the industry average of 2.9%. Payout Ratios Payout ratio: 30%. Cash payout ratio: 5%. Reported Earnings • Jun 30
Full year 2024 earnings released: EPS: US$0.012 (vs US$0.007 in FY 2023) Full year 2024 results: EPS: US$0.012 (up from US$0.007 in FY 2023). Revenue: US$118.0m (up 14% from FY 2023). Net income: US$4.87m (up 69% from FY 2023). Profit margin: 4.1% (up from 2.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Food industry in Africa. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. New Risk • Jun 04
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.8% operating cash flow to total debt). Minor Risk Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). New Risk • Apr 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: P1.38b (US$99.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.8% operating cash flow to total debt). Minor Risk Market cap is less than US$100m (P1.38b market cap, or US$99.5m). Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to P3.50, the stock trades at a trailing P/E ratio of 35.2x. Average forward P/E is 11x in the Food industry in Africa. Total returns to shareholders of 100% over the past three years. New Risk • Nov 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Batswana stocks, typically moving 2.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (2.8% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (P1.13b market cap, or US$83.2m). New Risk • Oct 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Batswana stocks, typically moving 3.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (3.0% average weekly change). Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (P1.02b market cap, or US$73.7m). Reported Earnings • Sep 08
Full year 2023 earnings released: EPS: US$0.007 (vs US$0.018 in FY 2022) Full year 2023 results: EPS: US$0.007 (down from US$0.018 in FY 2022). Revenue: US$103.5m (up 17% from FY 2022). Net income: US$2.88m (down 59% from FY 2022). Profit margin: 2.8% (down from 7.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Food industry in Africa. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Jul 06
Seed Co International Limited Announces Gross Dividend for the Year Ended March 31, 2023, Payable on or About August 9, 2023 Seed Co International Limited announced gross dividend of 0.25 US cents per ordinary share has been declared from the year ended 31 March 2023. The dividend will be paid net of applicable withholding taxes on or about 9 August 2023 to shareholders registered as such in the Share Register of the company by close of business on 2 August 2023. New Risk • Jul 06
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.3% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (2.8% net profit margin). Shareholders have been diluted in the past year (3.2% increase in shares outstanding). Market cap is less than US$100m (P1.06b market cap, or US$79.0m). Reported Earnings • Jul 05
Full year 2023 earnings released: EPS: US$0.007 (vs US$0.018 in FY 2022) Full year 2023 results: EPS: US$0.007 (down from US$0.018 in FY 2022). Revenue: US$103.5m (up 17% from FY 2022). Net income: US$2.90m (down 59% from FY 2022). Profit margin: 2.8% (down from 7.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. New Risk • Jun 17
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported September 2022 fiscal period end). Profit margins are more than 30% lower than last year (1.5% net profit margin). Shareholders have been diluted in the past year (3.2% increase in shares outstanding). Market cap is less than US$100m (P1.06b market cap, or US$80.4m). Reported Earnings • Dec 14
First half 2023 earnings released: US$0.011 loss per share (vs US$0.004 profit in 1H 2022) First half 2023 results: US$0.011 loss per share (down from US$0.004 profit in 1H 2022). Revenue: US$25.5m (down 28% from 1H 2022). Net loss: US$4.30m (down 387% from profit in 1H 2022). Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Food industry in Africa. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Nov 22
Seed Co International Limited Provides Earnings Guidance for the Full Year Ending September 30, 2022 Seed Co International Limited provided earnings guidance for the full year ending September 30, 2022. For the period, the company expects interim EPS will be approximately 380% to 400% (between 1.41 and 1.48 US cents) lower than the EPS of 0.38 US Cents for the corresponding period ended 30 September 2021. Reported Earnings • Jul 06
Full year 2022 earnings released: EPS: US$0.018 (vs US$0.029 in FY 2021) Full year 2022 results: EPS: US$0.018 (down from US$0.029 in FY 2021). Revenue: US$88.5m (flat on FY 2021). Net income: US$7.10m (down 37% from FY 2021). Profit margin: 8.0% (down from 13% in FY 2021). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Feb 02
Seed Co International Limited Appoints Régis Fournier as Non-Executive Board Member of the Company Seed Co International Limited announced the appointment of Regis Fournier as Non-Executive Board member of the Company. Régis FOURNIER is French and CEO of Limagrain Field Seeds. He studied agronomy in Montpellier and Paris, and holds a Master in Agronomy. He began his career in 1992 in MAISADOUR, a cooperative group in the South of France, and progressed to marketing and sales functions before becoming Director of the Seeds Branch in 2003. He has been Director of Innovation and International Development of the whole Maïsadour Group, and lately was in charge of all the Vegetal productions and business in the Group. Régis FOURNIER was member of MAISADOUR Group Management Committee and Board, and General Manager of MAS SEEDS, a JV between MAISADOUR and SYNGENTA. Reported Earnings • Jul 03
Full year 2021 earnings released: EPS US$0.029 (vs US$0.016 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: US$88.5m (up 24% from FY 2020). Net income: US$11.3m (up 82% from FY 2020). Profit margin: 13% (up from 8.7% in FY 2020). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Feb 21
New 90-day high: P2.20 The company is up 20% from its price of P1.84 on 20 November 2020. The Batswana market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 4.0% over the same period.