Online Reporter
Tapiwanashe Mangwiro
Starafrica corporation recorded a strong start to its financial year, with revenue rising 31 percent in the first quarter to June 30, 2026, as higher sales volumes at its sugar businesses boosted operating profit by 58 percent.
The diversified group, which operates Goldstar Sugars (GSS), Country Choice Foods (CCF) and Silver Star Properties, said the performance was largely driven by increased demand and the success of pricing measures introduced in the latter part of the previous financial year.
Granulated sugar sales volumes at GSS increased 38 percent compared with the same period last year, supported by competitive local pricing and stronger market demand.
The company said lower prices introduced to defend market share had succeeded in stimulating demand, although the strategy came with some pressure on margins.
“Strategic lower price adjustments implemented in the latter part of the previous financial year to improve competitiveness were successful in defending market share and in stimulating demand,” the company said in its trading update.
The stronger volumes also helped offset some of the cost pressures facing the business, with operating profit before the group’s share of profit from its associate rising 58 percent year-on-year.
The growth in operating profit was attributed to volume-led revenue expansion and higher sundry income, although the gains were partly offset by increased operating expenses.
Gross profit margin, however, narrowed to 17 percent from 18 percent in the comparative period as higher input costs absorbed part of the benefit from increased volumes.
GSS also faced production disruptions during the quarter, with water supply interruptions and logistics-related plant downtime affecting operations. Delays in the delivery of critical spares, linked to global logistics disruptions, compounded the challenges.
Management responded by commissioning additional boreholes to address water supply constraints.
