Ariston sails over economic crisis

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ARISTON Holdings (Ariston) says its operations have not been affected by Zimbabwe’s adverse economic environment due to the company’s foreign currency generation function.
This sets the listed agro group apart from most local businesses, which have been devastated by the country’s foreign currency crisis.
The operating environment continues to be characterised by a deterioration in the economic fundamentals, particularly the increase in inflation and the shortage of foreign currency, with official inflation spiking to a post-dollarisation high of 31,01 percent in November, from 4,29 percent in July 2018.
“As a predominantly foreign currency generator, the group was able to ensure minimal disruptions to operations in the prevailing economic environment,” Alexander Jongwe, Ariston’s board chairman said in a statement accompanying the company’s financial results for the year ended September 30, 2018 published a fortnight ago.
Ariston’s business interests span a variety of areas including tea, macadamia, fruit, poultry and beef farming. The operations of the tea growing units are fully integrated with the company’s Blended Tea Factory for tea processing.
Jongwe said the company’s revenue increased by 29 percent from $11 million recorded in prior year to $14,1 million in the current year.
Gross margin for the year increased to 36 percent from 31 percent in the prior year.
The company posted a profit after tax of $2,9 million compared to a loss of $1,8 million in the prior year.
Tea production volumes at 3,285 tonnes, were up 35 percent on prior year.
“Average selling prices increased to $1,82 per kg from $1,73 per kg. Overall demand for tea remained firm during the year,” he said.
Macadamia production volume at 1,351 tonnes was marginally ahead of the prior year level of 1,324 tonnes. Jongwe said average selling price for macadamia improved by 18 percent on prior year.
Revenues from the fruit category which comprises pome fruit, stone fruit, avocado and banana, increased by 64 percent from prior year.
“The increase in pome and stone fruit was driven by improved average selling prices due to overall improvements in fruit quality and size with production volumes little changed from prior year,” said Jongwe.
He said there were modest increases in avocado and banana production volumes with the average selling price for avocado remaining unchanged from prior year.
The company says its 2019 agricultural season has commenced on a good note while its financial position has continued to improve.
“The majority of our crops are destined for the export market, and as the group continues to focus on quality and maintaining its international accreditation, the strides made in 2018 will be improved upon.
“Early indications are that export prices and demand will continue to be firm for the forthcoming season,” Jongwe added.
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