Seed Co says it strengthened cost controls and expanded its retail distribution network during the first quarter as rising input and distribution costs continued to weigh on the seed producer despite an improving operating environment.
In its trading update for the quarter ended 30 June 2026, the company said stable exchange rates, easing inflation and monetary discipline had created a more predictable business environment, although global supply chain disruptions continued to drive up operating costs.
“The operating environment remained broadly stable during the first quarter, on the back of relative exchange-rate stability, softening inflation and monetary discipline,” the company said.
“However, the benefits of improved macroeconomic conditions were partly offset by rising input and distribution costs, reflecting continued geopolitical tensions in the Middle East and Eastern Europe and their impact on global logistics, energy, chemicals and fertiliser supply chains and pricing.”
Against that backdrop, Seed Co said it intensified efforts to protect margins by maintaining strict cost discipline, tightening credit risk management and strengthening its retail presence.
“During the quarter under review, the Company continued to align its operations with the prevailing market environment, reinforcing cost discipline and credit risk management while advancing the development of the retail channel,” it said.
The company said the measures helped support stronger trading during the quarter as demand for winter cereal seed recovered and maize exports picked up.
Sales volumes increased 22 percent to 4,145 metric tonnes from 3,393 metric tonnes recorded in the comparable period last year. The seasonal operating loss also narrowed as higher sales volumes combined with continued cost containment efforts.
Looking ahead, Seed Co said management had shifted its attention to preparations for the main selling season, with emphasis on preserving liquidity.
“Attention is now turning to preparations for the main selling season. The Company remains focused on cash generation and disciplined working capital management, consistent with the seasonal nature of its operations,” the company said.
The update suggests Seed Co will continue prioritising operational efficiency and prudent financial management as it prepares for its busiest trading period while navigating persistent cost pressures across global agricultural supply chains.