Chronicle Editor
Oliver Kazunga, Senior Business Reporter
LISTED agro-concern, Ariston Holdings, has allocated an estimated US$1,5 million towards rehabilitation of infrastructure at the group’s estates following the damage induced by tropical Cyclone Idai that hit the eastern parts of the country.
In a statement accompanying financial results for the year ended September 30, 2019, group chairman, Mr Alexander Jongwe, said they have completed 80 percent of the rehabilitation works at the estates.
He said although his organisation received sufficient rainfall for its farming activities during last year’s agricultural season, its operations were affected by Cyclone Idai.
“The extent of damage on the estates varied substantially, with the greatest effects being experienced in Chimanimani. The total cost of rehabilitation was estimated at US$1,5 million and to date the group has completed approximately 80 percent of the rehabilitation works with all housing, roads and bridges having been restored while works on dams and irrigation equipment are ongoing,” said Mr Jongwe.
Though no lives were lost at the estates, he said, the damage was incurred on infrastructure and to a lesser extent, orchards. The group has operations in tea, macadamia nuts and fruits comprising of pome fruits, stone fruits, avocados and bananas. During the year under review, tea production volume was at 2 985 tonnes, nine percent lower than prior year.
“Average selling prices obtained in historical cost terms increased to ZWL$4,8 per kilogramme from ZWL$3,2 per killogramme in prior year driven by the effect of the depreciating currency on foreign currency denominated prices while in real terms foreign prices declined marginally from prior year.
“Overall demand for tea remained firm during the year,” Mr Jongwe said. Macadamia production volume at 1 301 tonnes was four percent down on prior year. Average selling price obtained in historical cost terms improved by 253 percent to ZWL$13,4 per kg current year from ZWL$3,8 per kg.
“The prices are largely driven by the effect of depreciating currency on foreign currency denominated prices coupled with marginal increases in United States dollar prices obtained due to improvement in the quality specification of current year crop.
“International macadamia prices and demand remained firm,” he said.
Overall revenue for the fruit category comprising of pome fruit, stone fruit, avocado and banana increased by 440 percent from prior year.
Production volumes of stone fruit and pome fruit continue to improve while avocado volumes doubled from the prior year level and banana volumes were marginally below prior year.
Mr Jongwe said pricing for avocado, which is an export crop remained unchanged in US$ terms while the rest of the fruit category registered price improvements to varying extents owing to price adjustments effected to counter inflation.
However, he said these still lagged behind import parity, consequently, avocado being an export crop contributed 41 percent to overall fruit revenue, which was significantly up from the four percent contribution.
On the group’s financial position, Mr Jongwe said inflation-adjusted revenue was up 59 percent from ZWL$64 million in the prior year to ZWL$101,8 million while historical cost revenue was up 241 percent to ZWL$48,1 million from ZWL$14,1 million in prior year.
The group ended the year with a profit after tax of ZWL$55million on an inflation adjusted basis, which was 326 percent ahead of the inflation-adjusted prior year comparative of ZWL$12,9 million.
On the outlook, he said the 2020 agricultural season has generally started on a low note with below normal rains being experienced in the country and the group was relying on its installed irrigation capacity to meet its water requirements for farming operations. — @okazunga
Online Reporter