Agra expects annual profit to rise by up to 27.5%

CHAMWE KAIRA

Agra Limited expects its profit after tax, basic earnings per share and headline earnings per share to increase by between 22.5% and 27.5% for the financial year ended 31 July 2026.

In a trading statement issued to shareholders, the agricultural services group attributed the expected growth to the diversification of its revenue streams, continued expansion in non-agricultural business activities and favourable rainfall conditions across large parts of Namibia.

Agra said sustained growth in its non-agricultural operations contributed meaningfully to overall earnings and strengthened the business’s resilience across varying market conditions.

The group also benefited from improved grazing conditions following favourable rainfall, which supported a recovery in livestock production.

The recovery stimulated activity in the livestock market and related services, contributing positively to Agra’s financial performance during the year.

The company said its diversified revenue base continued to support growth, with non-agricultural activities playing an increasingly important role in overall earnings.

Agra cautioned shareholders that the trading statement had not been reviewed or reported on by the company’s auditors.

Shareholders were advised to exercise caution when dealing in Agra shares until the publication of the group’s final financial results.

The results for the year ended 31 July 2026 are expected to be released on the Namibia Securities Exchange News Service on or about 23 October 2026.

By comparison, Agra last year posted its strongest financial performance in its 45-year history, with profit after tax reaching N$115.1 million for the year ended 31 July 2025, up 56.7% from the previous year.

Total revenue rose by 5.5% to N$2.8 billion, while gross profit increased by 9.2% to N$556.3 million. Operating profit grew by 43.7% to N$155.4 million.

Agra’s share price increased by 4.9% to N$3.85 as of 31 July 2025, delivering a total return of 11%, including dividends.

The company’s net asset value rose to N$802.6 million, with net asset value per share climbing from N$6.86 to N$7.86, demonstrating continued value creation for shareholders.

This improvement followed a challenging prior year, shaped by strategic investments in expanding Agra’s footprint, upgrades to retail branches, as well as the impact of a prolonged drought.

The company said last year that these investments were bearing fruit, contributing to improved operational efficiency.

In last year’s results, the company said improved rainfall throughout the country had brought much-needed relief to the agricultural sector, allowing farmers to begin recovering and re-engaging with the market.

Agra also benefited from the recovery of previously written-off debts, which contributed positively to last year’s profit.