Agra top partner in agriculture

Agra last week Friday released its financial performance report on the previous book year. Not only did this important role player in agriculture celebrate its 13th year of existence in Namibia, but continued its growth to a turnover of N$1.8 billion for the group -17.7% higher than the previous financial year.

Gross profit for the group increased from N$145.8 million in 2010 to N$171.3 million, an increase of 17.5%.

Profit after tax amounted to N$24.5 million for the group compared to N$13 million in 2010.
In his report chairman of Agra’s board of directors Ryno van der Merwe stressed the importance of agriculture as alleviator of the country’s challenges and the importance of a partnership with a common vision between Government and the private sector.

He stated that Agra is an indispensable partner in the agricultural sector, committed to such a partnership, and after 30 years still committed to create jobs, provide products and services as well as contribute to economic development in Namibia.

“With the foundation of good knowledge, skills, experience and dedication of our people, Agra is in a favourable position to continue playing an important role in the agricultural sector,” he said.
The retail and wholesale division of Agra was once again the largest contributor to both turnover and net profit with improved performance in both sectors. At a time when competition in the retail sector has increased dramatically with foreign companies entering the Namibian market, Agra is proud to report an improvement in turnover from N$784 million in 2010 to N$873 million in 2011, an increase of 11.3%.

The livestock division made good progress in recapturing market share in Namibia. Net turnover achieved for the livestock division amounted to N$43.6 million compared to N$33.1 million in 2010, an improvement of 32%. The net operating surplus before head office costs of this division has changed from N$2.8 million in 2010 to N$2.6 million in 2011.

The termination of the central livestock agent Windhoek Livestock Auctioneers’ services with Agra, presents a new opportunity for Agra to restructure and align this part of the livestock division to Agra’s purpose and vision.

The net operating surplus of the Retail Division (comprising all Agra retail branches, Auas Wholesalers, Auas Vet Med and Safari Den) increased by 15.7 % compared to the previous year. Agra’s property division showed a significant increase of operating surplus from N$9.2 million in 2010 to N$16.1million in 2011.

Hannes Niewoudt of the supervisory committee expressed the committee’s satisfaction with Agra’s financial performance and inputs in agriculture in Namibia. He also commended the way in which Agra maintains established business and market share, with a diligent approach to its growth and development.

He also expressed his disappointment with the fact that bureaucracy is the reason for not yet being able to finalise the conversion from a co-op to a public company.

About Agra in Namibia he said: “Agra as an agricultural business belongs to Namibians, is driven and managed by Namibians and is represented country-wide to benefit all in the country. It is our heart’s desire that, from the side of the authorities, cognisance will be taken of the valuable source of expertise, ability and passion for our country that exists in Agra and its people.”

click to enlarge Agra’s livestock division made good progress in recapturing market share in Namibia © File