adminTinashe Makichi Harare Bureau
Agro-industrial company, Ariston Holdings Limited’s revenue for the half-year ended March 2014 increased 29 percent on the back of improved marketing by the group. The group recorded $8,6 million in revenue for the period as compared to $6,7 million posted in the same period last year.
Profit before taxation and interest went down 20 percent to $2,3 million for the period from $2,9 million of the previous half after a fair value adjustment of $5 million.
Finance costs increased by 48 percent to $1 million for the half year ended March 2014 from $690,700 recorded the previous year, as borrowings increased to $14,2 million as a result of rehabilitation programmes.
“As expected the first half of the year has seen significant increases in crop production. Tight liquidity on the local market has reduced demand for blended teas as well as reducing margins on fruit and vegetable sales,” said the company.
The company’s total assets for the period went up 32 percent to $48,6 million against 36,7 million recorded the same period the previous year.
Ariston Holding’s unit, Claremont Estate’s turnover of $849,000 was 10 percent of the group’s turnover.
An operating loss of $604,000 was reported compared to a $365,000 operating loss of March 2013.
The fair value adjustment of $1,4 million resulted in Claremont reporting a profit before interest and tax of $0,758 million.
In addition, Kent Estate recorded a turnover increase of 98 percent to $631,000 which was 7 percent of group turnover. An operating loss of $604,000 for Kent Estate was recorded compared to $594,000 in March 2013.
The profit before interest and tax of $366,000 was reported after the fair value adjustment of $970,000.
Southdown reported a turnover of $4,1 million and this represented 48 percent of group turnover.
An operating loss of $300,000 was posted compared to a loss of $90,000 of March 2013 and the fair value adjustment resulted in Southdown reporting a profit before interest and tax of $2,4 million.
FAVCO turnover was $3 million and contributed 35 percent to the group turnover.
An operating profit of $49,000 was recorded compared to a loss of $27,000 in March 2013.
“The second half of the year will see the bulk of our produce being sold and the proceeds brought to book. With half the export teas still to sell we expect a modest recovery in international tea prices in the second half of the year,” said Ariston Holdings finance director Martin Dzviti in a statement accompanying the company’s financial results.
He said traditionally winter accounts for the bulk of blended tea sales.
Dzviti said with a few exceptions productivity throughout the group will be improved and investments already made in productive capacity will ensure that without further investment productivity will continue to increase in the years ahead.
He said underutilised capacity remains in addition to that already rehabilitated and this additional potential will be developed as resources allow.
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