Padenga to resume meat exports

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PADENGA Holdings (Padenga) plans to recommence exports of crocodile meat to Europe in the last quarter of the year.
In a trading update for the quarter ended September 30, 2021, the Victoria Falls Stock Exchange-listed company last week said it did not export any crocodile meat during the period due to Covid-19 restrictions.

“The Covid-19 pandemic continued to negatively impact demand for crocodile meat by the European market.
“… 36 tonnes of export meat were in stock at the end of the period. Local market sales resulted in volumes of 150 tonnes being sold, up from 47 tonnes in the full year 2020. We closed the period with 28 tonnes of meat for the local market in stock,” the company said.

Turnover for the crocodile business was down 25 percent from US$6,40 million to US$4,78 million during the period, contributing 23 percent to Padenga’s total revenue.

Fair value adjustment fell as the larger crocodile skins in inventory are expected to fetch lower prices. Resultantly, the crocodile business’ loss for the period was US$1,87 million from a profit of US$3,5 million in the first half of 2020.

For the alligator segment; the volume of skins sold was down 48 percent, with the bulk being lower grade skins sold to the best advantage.
The company said its Texas operation remained “hamstrung by oversupply and reduced demand in the market for watch band size skins.”

The operation had been moving towards medium and large skin production because of improved margins in those size ranges, but the shift to smaller skins that was also experienced by the crocodile business resulted in Tallow Creek having skins that could not be sold at viable prices.

Revenue for the alligator business was down 50 percent from US$2,31 million to US$1,16 million. The segment’s loss for the period was US$520 000 from a loss of US$2,28 million in the first half of 2020.

In the mining segment, volumes at Pickstone were 22 percent below the comparable period last year due to feed grade ore and flooding of the open pit during the first quarter of the year.
Dallaglio’s revenue came in at US$15,23 million and contributed 72 percent to Padenga’s revenue.

The mining segment recorded a loss of US$9,58 million from a profit of US$2,64 million driven by the low ore grade and high strip ratio at Pickstone Peerless mine. Total revenue for Padenga was down a marginal six percent year-on-year from US$22,5 million to US$21,2 million.
Operating income for the combined business was down from a positive position of US$2,25 million to a loss position of US$8,55 million.

Padenga is the leading supplier of crocodile skins and meat in Zimbabwe, accounting for nearly 85 percent of the global supply of Nile crocodile skins used for high-end luxury fashion brands.
The company operates three crocodile breeding and production farms in Zimbabwe ― Kariba Crocodile Farm, Ume Crocodile Farm and Nyanya

Crocodile Farm. Each farm has the capacity to breed close to 15 000 hatchlings per year.
Nile alligators are bred at Lone Star Alligator Farm in Texas, USA.
Padenga Holdings Limited produces crocodile skin and meat products for consumption by the local market and for export to European and Asian markets.
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