Timothy
Business Writer
Starafrica corporation says the business expects a volume recovery going forward, largely as a result of resolved raw sugar supply challenges and the plant refurbishment and replacement programme, which is on track.
The business also continues to improve operational efficiencies and reduce costs with the aim of returning the business to profitability.
The company’s total turnover for the year ended March 31, 2024, increased by 23 percent from $1,54 trillion in the previous year to $1,90 trillion, largely attributable to inflationary pressures.
Group chairperson, Rungamo Mbire, said in a statement of financials that the group incurred an operating loss of $679 billion for the year against a profit of $13 billion in the comparative year.
“This loss was primarily due to a 3-month plant shutdown due to raw sugar supply challenges that have since been resolved, as well as the increased cost of key raw materials and other overheads.
“The group continues to rationalise operations to reduce costs,” he said.
In historical cost terms, total revenue increased by 789 percent from $42 billion in the previous year to $378 billion, while operating profit decreased by 910 percent, from a profit of $2,28 billion to a loss of $18,47 billion.
During the year under review, operating unit Goldstar Sugars (GSS) reported a 32 percent decrease in sales volumes of granulated white sugar from 82 321 tonnes in the previous year to 55 799 tonnes.
“Production throughput at 52,605 tonnes was 32 percent lower than the prior year’s tonnage of 77 270 tonnes due to raw sugar supply issues. Active engagements with our various stakeholders have largely resolved the raw sugar supply challenges,” said Mr Mbire.
He noted that GSS continues with its refurbishment and replacement programme for critical components of plants and machinery to improve plant efficiencies and the quality of refined sugar.
“The business maintained its certification by The Coca-Cola Company (“TCCC”) and its Food Safety Certification under the FSSC 22000 series,” said Mr Mbire.
Country Choice Foods also reported a decline in sales volumes of sugar specialty products by 39 percent, from 2 048 tonnes in the previous year to 1 244 tonnes.
Mr Mbire said product uptake was adversely affected by exchange rate distortions that persisted for most of the year in mainstream retail outlets.
“During the period, the unit launched new products into the market, namely bicarbonate of soda, desiccated coconut, and muesli. The business unit has sufficient production capacity to supply the market at competitive prices and continues to focus on innovation,” he said.
Revenue performance for the group’s properties business, in inflation-adjusted terms, remained relatively stagnant with $10,3 billion of rental income being recorded, compared with $10,4 billion in the prior
year.
Tongaat Hulett Botswana, an associate, reported a profit of $21 billion for the period, with the company’s share being $7 billion after converting the earnings to Zimbabwe dollars at the average RBZ Interbank Exchange Rate for the period to March 31, 2024.
Bongani Ndlovu