Chronicle Editor
Sikhulekelani Moyo, [email protected]
SUGAR processor Star Africa Corporation has revealed that in the six months ending September 30, it recorded a 37 percent increase in turnover driven by a rise in sales.
In a statement accompanying the company’s trade update, Star Africa chairman, Dr Rungano Mbire, said granulated white sugar production and sales increased to 36,818 tonnes and 36,625 tonnes respectively.
He noted that despite economic constraints, the business observed an increase in sales compared to the prior period, largely due to improved product supply and the reinstatement of duty on imports.
Dr Mbire said the business entered into a long-term raw sugar supply arrangement, which facilitates better planning. He also highlighted the benefits of ongoing cost optimisation initiatives.
“Turnover for the period under review increased by 37 percent, rising from ZWG381,8 million to ZWG523,9 million. This growth was primarily driven by a notable increase in sales volumes. The group posted a profit of ZWG25,6 million compared to a loss of ZWG86,9 million in the prior year,” said Dr Mbire.
Dr Mbire stated that the group remains committed to streamlining operations to further enhance profitability. He noted that the period under review witnessed an increase in Goldstar sugar production and sales volumes, with respective growth rates of 66 percent and 55 percent compared to the prior period.
“This positive performance was primarily attributable to the resolution of raw supply challenges, improved plant availability, and the reinstatement of duty on imports. Granulated sugar production and sales increased to 36,818 tonnes and 36,625 tonnes, respectively. Nevertheless, power outages continue to impact operations,” said Dr Mbire
He added that management is actively engaged with Zesa to address these challenges, as the use of diesel generators is not a cost-effective solution.
Meanwhile, Dr Mbire said the plant maintained its certification by the Coca-Cola Company and its food safety certification under the FSSC 22000 series.
Regarding the 2025 National Budget, Dr Mbire expressed concern that it failed to categorise industrial granulated white sugar to standard ratings for value-added tax purposes, posing a significant threat to the local sugar industry, as the status quo translates to higher costs and selling prices.
“The business, through the Zimbabwe Sugar Association, will continue to engage the authorities to find a lasting solution to protecting the local sugar value chain from sugar dumping by regional producers,” said Dr Mbire.
The sugar value chain is one of the 10 priority value chains under the National Development Strategy 1. — @SikhulekelaniM1.
Online Reporter