Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
Diversified agro-industrial concern, Ariston Holdings Limited, remains confident of its long-term viability despite ongoing financial and operational headwinds, with its board affirming the group’s status as a going concern.
The assurance follows a comprehensive review by the Board of Directors of the Group’s financial position and performance for the half year ended March 31, 2025, which revealed narrowing of losses and a shift toward longer-term financial sustainability.
“The Directors have undertaken a detailed review of the going concern status of the Group and are satisfied that the Group has adequate resources to continue operating for the foreseeable future,” the firm said.
This confidence stems from improved financial metrics, recent funding inflows and ongoing operational rationalisation efforts.
Ariston reported a loss of US$1 437 871 for the six-month period, reflecting a 32 percent improvement from the previous year’s loss of US$2 101 228.
Revenue came in at US$1 991 087, representing an 18 percent decline from the same period last year, largely driven by a fall in local tea sales volumes.
However, a 24 percent reduction in production costs cushioned the revenue slide, helping limit the group’s gross loss to US$441 078.
While the Group’s liabilities exceeded current assets by US$930 572, this was attributed to an ongoing transition from short-term borrowing to long-term debt.
As part of this restructuring, Ariston secured US$3 million in funding, broken down into US$1 million for capital expenditure and US$2 million for working capital.
“This will afford the Group sufficient time to stabilise operations, improve liquidity, and return to profitability,” said the company in a statement accompanying its results for the half year ended March 31, 2025.
The working capital facility matures in April 2026, while the capital expenditure loan is due in December 2027.
The Directors noted that the business continues to grapple with external macroeconomic shocks including climate change, erratic rainfall patterns and subdued global commodity prices worsened by the ongoing Russia–Ukraine conflict.
To mitigate these risks, the Group invested in irrigation infrastructure and commissioned a solar power plant in 2023 to reduce dependency on diesel and manage energy costs during frequent power outages.
“This initiative has led to significant cost savings and supports the Group’s environmental sustainability objectives through the use of renewable energy. Further solar installations are planned at Roscommon, Clearwater and Kent estates,” the Group added.
Additionally, cost-reduction strategies such as staff rationalisation and process automation are in full swing as the company strives to rebuild its operational efficiency.
On the production front, tea volumes declined by 45 percent to 1 004 tonnes, compared to 1 830 tonnes in the prior period.
Export volumes were deliberately constrained due to depressed global prices and the retention of 30 percent of export proceeds.
Still, local demand remained steady and underpinned revenue, which was only 2,5 percent lower than the comparative period.
Macadamia nut production came in at 411 tonnes, a 32 percent decrease from the previous year.
During the reporting period, the Group managed to sell 140 tonnes, marking a change from the prior period when no current-season nuts had been sold by March 31.
“Significant sales will now be achieved as the season commences in April to end of May,” the firm noted.
Since the shift in functional currency, the Group benefitted from exchange gains on Zimbabwe dollar-denominated liabilities, a 78 percent improvement from the prior year. Additionally, finance costs declined by 25 percent, further aiding the Group’s financial stability efforts.
Despite pausing capital investments during the period under review to focus on operational restructuring, Ariston said the ongoing reviews and realignment initiatives have reinforced its strategic roadmap.
“The Directors are confident that the Group’s strategic plans and initiatives demonstrate its ability to remain viable and meet its obligations as they fall due. Accordingly, these financial results were prepared on a going concern basis.”
With improved financial discipline, targeted investments in efficiency and a sharpened focus on sustainability, Ariston is positioning itself for recovery and long-term stability amid a volatile operating environment.
