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LISTED crocodile breeder, Padenga Holdings Limited, (Padenga) is angling to cash in on strong demand from the major brands for premium grade Nile skins, as it returns to profitability after scooping a turnover of US$127,9 million for the year ended 31 December 2022, an increase of 68 percent from the previous year.
In 2021, the group recorded a turnover of US$76,1 million.
The Victoria Falls Stock Exchange listed entity says with high demand for its products, it will continue investing into having an increased proportion of the skins produced qualifying for this grade quality.
According to Padenga chairperson, Mr Thembinkosi Sibanda, the crocodile farming division has undergone numerous challenges mainly relating to changing customer requirements, as well as adverse market conditions.
He said strategies to return the business to optimal skins volume production, maximise skin sales realisations, and re-enter the crocodile meat export market are bearing fruit and are expected to generate improved returns for the business in 2023.
“Demand from the major brands for premium grade Nile skins remains very strong and Padenga is uniquely placed to capitalise on this situation, hence the continued investment into having an increased proportion of the skins produced qualifying for this grade quality,” said Mr Sibanda.
During the year under review, a total of 34,117 skins were harvested, compared to 55,136 skins that were harvested in the prior year. Mr Sibanda noted that the reduction was due to a necessary shift in the harvest season by providing additional time to allow for remedial actions implemented to positively impact skin quality.
Consequently, total skin sales volumes were down 17 percent to 33,189 skins compared to 39,936 skins sold in the prior year.
On financial performance, Mr Sibanda said the group recorded a turnover of US$127,894,086 in the period under review. This was a 68 percent increase over the US$76,097,089 recorded in the prior year.
Dallaglio contributed 82 percent (66 percent in FY21) and Zimbabwe crocodiles 18 percent (31 percent in FY21).
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