daniel chigunwe
Michael Tome Business Reporter
STARAFRICA corporation subsidiary, GoldStar Sugars Harare, says its production grew by 24 percent in the second quarter to June 30, 2021 driven by investments in critical production equipment.
During the quarter under review the group saw improved uptake in a number of its products stemming mainly from the retail sector’s ability to operate without much interruption during the Covid-19 inspired lockdowns.
As a result, improved equipment operation effect led to a 14 percent revenue growth for the refinery unit.
The unit thus made significant inroads into the market, growing the company’s footprint in the domestic market.
The group also noted that declining Inflationary pressures in the period under review steered the company to a better standing resultant of price stability in the consumer markets.
In a trading update, Starafrica group secretary Aldo Musemburi, said the company’s capital investment was anticipated to lift the group’s volumes and profitability across the board.
“During the quarter under review, significant investment was made in re-tooling the unit through acceleration of replacement of critical machinery such as centrifugal machines, an effluent treatment plant and rehabilitation of the raw sugar warehouse.
“This is expected to result in significant increase in plant throughput and cost containment as the refinery continues to move towards highly efficient production,” said Mr Musemburi.
Despite the growth and aforementioned improvements, the group faced economic headwinds particularly relating to Statutory Instrument 127 in May 2021, which saw some industry players increasing US prices, which affected enterprise profitability.
Another Starafrica subsidiary, Country Choice Foods’ production volumes grew by 69 percent compared to prior the period, spurred by introduction of new products on the market and increased productivity at Gold Star Sugars.
In the outlook the Group projects continued enhancement of macro-economic details into the next quarter and beyond as the trading environment becomes more favourable to both industry and consumers alike.
Online Reporter