ARISTON Holdings says its operations continue to be affected by increasing costs of production for crucial inputs such as fertilisers and crop chemicals, as well as incessant power outages that have resulted in increased fuel usage for generators.
In a trading update for the quarter ended June 30, 2023, the company said the fuel expense was so significant that the board invested in a solar power generating project completed in July 2023.
Most companies are investing in off-grid power generation as they seek to reduce operation costs resulting from power outages.
“This will have the effect of underpinning uninterrupted production whilst at the same time reducing the cost of producing tea to sustainable levels,” Ariston said.
“The full effect of this significant investment will be felt in the year ending September 30, 2024 and not in the current year’s performance.”
During the quarter under review, tea production volumes dropped by 21 percent to 2 245 tonnes from 2 850 tonnes, while export tea sales volumes improved to 1 343 tonnes from 897 tonnes in the prior comparative
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