Agra achieves positive financial results

December 7, 2015, 10:11am


Board Member, Leon van Wyk constituting the AGM with (from left): Louis van der Riet of PricewaterhouseCoopers; Agra CEO, Arnold Klein and Chairman of the Board of Agra, Ryno van der Merwe.  Photo: Agra

Agra

“Improving the net profit before tax figure from a loss of N$2,2 million in 1997 to a profit of N$55 million for the current year,” was one of the highlights of his career as Chief Executive Officer of Agra, Peter Kazmaier mentioned in his last CEO report in the Agra 2014/2015 annual report.

Agra Limited hosted its 5th annual general meeting on Friday, 4 December 2015 and looked back at a successful financial year.

Agra Limited achieved a total gross company turnover of N$2,138 billion for the 2014/2015 financial year, an increase of 10,75% compared to the 2013/2014 financial year.

Net turnover for the group amounted to N$1,34 billion, an increase of 7,3% compared to the N$1,25 billion of the previous financial year. Other income for the group increased with 71,2% from N$26,1 million in 2014 to N$44,7 million in the 2014/2015 year, largely due to an increase in the fair value of investment properties.

The Agra group achieved a net profit after current normal tax of N$48,9million, an improvement of N$8,4 million or 21%.

The retail and wholesale division, comprising the Agra branches, Auas Wholesalers and Auas Vet Med achieved a gross turnover of N$1 282 million.

The monetary turnover of the livestock division was N$741 million.

Agra Arms, Ammunition and Outdoor achieved a gross turnover of N$119,5 million. The properties division’s gross income increased from N$21,9 million in 2014 to N$32,8 million.

The performance of ProVision was affected by the number of consultancies procured in a very difficult agricultural year and the decreased number of swakara pelts marketed, resulting in a decreased income from swakara of N$55,4 million compared to N$73,9 million in 2014. A total number of 108 706 pelts were sold at the September 2014 and April 2015 auctions at Copenhagen, Denmark, while conditions in the global fur market affected the prices. This division continues to work on growing Agra’s market by providing professional support services to the agricultural sector in Namibia.

The company also looks back at some of its most significant milestones during the past year: the completion and opening of its two largest investments, being the Auas Valley Shopping Mall and the Agra Hyper development in Lafrenz, Windhoek with Agra’s new flagship branch, as well as the completion of major renovations and a new retail store at Agra Opuwo.

The Chairman of the Board of Agra, Ryno van der Merwe, emphasised focus areas for the upcoming year being the consideration of the unfavourable factors in agriculture that puts pressure on the profitability of producers and clients of Agra; investigating and exploring new opportunities to add to Agra’s business, expand Agra’s market share and strengthen its brand. He also mentioned prudent cash flow management and identifying and managing possible risks as well as a motivated staff corps, excellent customer service and good stock management as important priorities.

Kazmaier in his report expressed his appreciation towards Agra’s clients without whom, he says, ‘we would not exist’ and looking back at his 20 years as CEO of Agra, he said: “Over the 20 years we could always count and depend on our customers. It was definitely not easy all the time, but the more we improved our side of the coin with better service, better stock availability, extended product range and of course, better prices, the more customers made Agra their preferred business partner.”

In his comments on the auditors’ report, Louis van der Riet of PricewaterhouseCoopers commended Agra on its good financial management which he said “shows a good picture from an auditor’s perspective.”

Agra shareholders expressed their confidence in the board of directors and executive committee of Agra under leadership of the newly appointed CEO, Arnold Klein, to take Agra to further heights in the future. Agra and clients look forward to a new Agra branch that will be opened in Rundu early next year and the first DIY Depot that will be opened in Okahandja. A number of retail branches are also on the list for receiving upgrades in the next year.