Vusumuzi Dube
Judith Phiri, Business Reporter
LISTED agro-industrial concern, Hippo Valley Estates Limited has said its historic revenue realised in the first quarter grew by 785 percent to ZWL$ 131,9 billion from ZWL$14.9 billion recorded during the same period last year on the back of price adjustments in response to hyperinflationary pressures.
In a trading update for the first quarter ended 30 June 2023, Hippo Valley Estates said in inflation-adjusted, the revenue was ZWL$231.4 billion from ZWL$171.4 billion recorded during the same period last year.
The Company said: “Current marketing initiatives remain focused on growing and optimising returns from both local and premium export sales. Whilst the local market remains pivotal for the industry, management prioritises efficient fulfilment of commitments to existing regional and premium international markets as well as development of new markets, necessary for the generation of additional foreign currency to sustain the industry’s requirements for critical imports.”
Hippo Valley Estates said total sugar produced for the quarter amounted to 57 427 tonnes, trailing prior year by 10.6 percent due to delayed deliveries by farmers on account of late finalisation of sugarcane supply contractual agreements with private farmers.
The company said major water supply dams around the country will provide sufficient cover for the industry’s irrigation regimes for approximately two seasons.
“Notwithstanding El Nino episodes characterised by dry and warm conditions which are expected between December 2023 to March 2024, the industry’s major water supply dams are envisaged to provide sufficient cover for the industry’s irrigation regimes for approximately two seasons.”
Hippo Valley Estates said total industry sugar production for the 2023/24 season is forecast at 414 773 tonnes compared to 396 682 tonnes in the 2022/23 season, while it was still well below the nameplate industry capacity of 600 000 tonnes.
The company said the industry was implementing both vertical (yield and quality improvements) and horizontal strategies (new developments) to improve capacity utilisation in the medium to long term.
“In particular, planned plough out and replant programmes and introduction of new varieties will significantly improve yields in future seasons.”
Industry sugar sales into the domestic market for the same period, amounted to 87 816 tonnes compared to 84 228 tonnes in 2022, which was 4 percent above the comparable period in the prior year.
Hippo Valley Estates said the increase was largely on account of firm demand from industrial customers during the quarter ending 30 June 2023.
Industry exports amounted to 3 423 tonnes, while in 2022 it was 10 039 tonnes with the differential being due to the fact that in the prior year there were carry-over export allocations which were rolled over while in the current year the bulk of the export orders will be processed in the second and third quarters of the year.
The company said its share of the total industry sugar sales volume was 91 239 tonnes for the 3 months to 30 June 2023 which was 52.12 percent compared to 94 257 tonnes in 2022 which was 54.50 percent.
Zimbabwe Sugar Sales (Private) Limited (ZSS) is the marketing desk for all raw and Sun Sweet Brown Sugar produced by industry.
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