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US$6,6 million.
All of Ariston’s three units – Southdowns, Claremont Estate and Kent Estate – recorded profits in the interim on fair value adjustment. The locally listed agriculture-focused company had suffered a US$225 556 loss in the comparative period the prior year.
“Group revenue reduced to US$6,682 million. The operating profit was US$2,917 million after fair value adjustment,” said Ariston in a statement accompany the group’s half- year financial results.
The company said during the period under review its management had been reinforced with the appointment of Dr Anxious Masuka as chief operating officer and Mr Martin Dzviti as finance director.
Ariston said adequate funding in the first half has seen improvement across the board particularly in agricultural activity.
The company said full production capacity is still a prospect for the future and the ZSE- listed concern said “nevertheless significant strides have already been made in rehabilitating the group”.
“The introduction of a large potato crop will bring new balance to horticultural activities. Much remains to be done to reach full potential thus additional investment in the second half will be made into irrigation, plant material and factory equipment,” the firm said.
Ariston said increased production has not been converted into sales and the second half will focus on converting the considerable stock into cash.
Traditionally, winter sees strong blended tea sales. Combined with improved focus, this should see trading contributing in the second half.
Ariston said Southdown reported a turnover of US$1,357 million, which was a slight reduction of 2 percent excluding inter-company sales of US$1,193 million to Fruits and Vegetable Company. Favco turnover was slightly reduced by 2 percent to US$4,2 million, contributing 64 percent to group turnover and posting US$265 000 loss.
Claremont Estate’s turnover was at US$759 000 was 11 percent of group turnover, representing 27 percent surge compared to 2012.
The unit suffered an operating loss of US365 000 compared to US$67 000 in 2012. A US$1,332 million fair value adjustment pushed the Ariston subsidiary into US$968 000 before tax profit.
Kent Estate posted US$318 000 turnover, representing a 24 percent decrease over the same period last year and 5 percent of group revenue.
Profit before tax of US$502 000 was after fair value adjustment of US$1,096 million during the period under review.
Online Reporter