- Agricultural company Agriterra reported narrower losses amid a rise in revenue. The company also said it may need to secure financing earlier than expected if the Covid-19 outbreak, which had yet to spread significantly in Mozambique, intensified.

For the year ended 31 March 2019, pre-tax losses narrowed to $3.1m from $5.0m on-year as revenue rose to $10.6m from $9.2m.

During the year, the group focussed its efforts on its core revenue-generating businesses, the grain and beef divisions based in Mozambique.

The beef division reported meat sales for the year fell to 1,260 tonnes from 1,453 tonnes amid the outbreak of foot and mouth in the country. In its grain business, meal sales volumes for the year rose 2% to 16,791 tonnes, while sales of all maize products including animal feed to Mozbife fell to 5,271 tonnes from 6,663 tonnes on-year.

'The forecasts show that the group requires further funding to meet its commitments as they fall due and in addition to this the group is reliant on maintaining its existing borrowings,' the company said. 'If the group's forecasts are adversely impacted by Covid-19 or other factors, then the group may require further funding earlier than expected,' it added.

'The group as a whole had a good start to 2020. Sales to relief agencies after Cyclone Idai, underpinned sales in the grain division in our traditionally quiet first quarter, however inventory overhang in the market as a result of the aid programmes slowed continued sales progress in the second quarter.'

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