Ariston moves to repair infrastructure

AGRO-INDUSTRIAL firm Ariston Holdings (Ariston) says it needs about US$1,5 million to repair infrastructure that was damaged by Cyclone Idai on its farms.
Zimbabwe, together with Malawi and Mozambique, was in March this year hit by Cyclone Idai, which caused catastrophic damage leaving more than 1 000 people dead and thousands more missing
Paul Spear, Ariston’s chief executive, said damage on the estates varied substantially, with the greatest effects being experienced at Roscommon Estate which is located in Chimanimani.
“While there was no loss of life, damage was incurred on infrastructure, including roads, bridges, irrigation equipment, housing and to a lesser extent, orchards,” he said in the company’s financials for the half-year to March 31, 2019.
The group is currently seized with rebuilding the infrastructure that was damaged. Early indications are that US$1,5 million is required for this rehabilitation work. The group is engaged with the matter through an insurance claim.
Ariston had earlier said that some of its the macadamia crop had been affected by the cyclone, however, Spear said full year volumes for macadamia are expected to be in line with the prior year.
“The average export price is higher than prior year as quality has continued to improve,” he added.
And with harvesting in stone and pome fruit having been completed as at half-year, production volumes in the fruits had grown by 37 percent to 1 207 tonnes.
Tea production, which improved during the period under review by six percent to 1 954 tonnes, is also expected to be in line with prior year.
The group, however, incurred an operating loss of $2,90 million, down from an operating profit of $630 thousand in prior year, after expenses grew by 249 percent against prior year, “reflecting the effect of the depreciation of the RTGS$ against the US$”.
“The majority of the group’s suppliers were quoting prices in RTGS$ at an implied rate higher than the official interbank rate, which contributed to the growth in operating expenses,” Spear said.
Still, the loss was compensated for by fair value adjustments, which rose to $7,21 million compared to $0,50 million for the prior comparative period.
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