Mishma Chakanyuka, Staff Writer 
LISTED sugar refiner Starafrica Corporation (Starafrica) recorded a 40 percent increase in turnover to $20,90 billion from $14,92 billion, due to strong demand for all the group’s products.
In a statement accompanying the group’s financial results for the six months ended September 30, 2022, chairman Rungamo Mbire applauded the government for making efforts to improve the economy.
“The company looks forward to the government reinstating duty on imported sugar, a development which will impact positively on the local sugar industry,” Mbire said.
The group’s operating profit for the period however, receded by four percent, to $1,35 billion from $1,41 billion in the prior year’s comparative period, a direct result of increases in raw sugar prices and operating costs in real terms.
“Increasing global inflationary pressures have resulted in a spike in the costs of imported chemicals, packaging and refinery spares,” Mbire said.
Meanwhile, the group’s subsidiary, Goldstar Sugars, recorded a five percent increase in sales volumes to 41,155 tonnes from 39,294 tonnes on the back of sustained high demand for sugar in the market, despite increased imports after the promulgation of Statutory Instrument 98 of 2022.
Mbire noted that production throughput at the refinery was adversely affected by high plant downtime caused by power outages and equipment breakdowns, resulting in a six percent decrease in production volumes to 37,975 tonnes from 40,577 tonnes in the prior comparative period.
Sales volumes at Country Choice Foods improved by 28 percent to 1,176 tonnes from 919 tonnes in the comparative period, driven by an improvement in the production of the sugar specialities unit to 1,229 tonnes from 901 tonnes.
The group’s property business’ revenue performance for the period improved significantly with $100,19 million of rental income being recorded, compared to $47,80 million in the prior period.
“The unit has recovered significantly from the prior year, which was negatively impacted by the Covid-19 pandemic, which reduced tenants’ ability to generate income and meet their rental obligations,” Mbire said.
“Following the waning of the pandemic, occupancy rates and, consequently, rental collections have increased across the property portfolio,” he added. newsdesk@fingaz.co.zw
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