starafrica stops sugar exports – NewsDay Zimbabwe

BY FREEMAN MAKOPA

ONE of Zimbabwe’s largest sugar producers has suspended exports in response to strong local demand in recent months, which has outstripped supply.

Zimbabwe Stock Exchange-listed Starafricacorporation said refined white sugar had sparked new consumer interest in the domestic market, and its flagship operation, Goldstar Sugars Harare (GSSH) saw volumes increase 46% over the past year. semester ended September 30, 2021.

“Due to the comprehensive capital investment and equipment maintenance plan, GSSH Harare sold 38,294 tonnes compared to 26,959 tonnes sold in the comparative period of the previous year,” the company said in a comment to financial statements for the period under review.

“The 46% improvement in sales was made possible by the continued high demand for refined white sugar in the market. However, unlike the previous comparative period, no export sales were recorded during the period under review, as all production was absorbed in the domestic market, with demand still largely exceeding supply ‘, starafrica said.

Starafrica’s revenue increased 38% to $ 3.92 billion during the reporting period, from $ 2.84 billion reported in the same period the previous year.

The company said the improvement in volumes was supported by a significant recovery after declining demand over the past year, when a series of strict lockdowns were put in place to contain the spread of the COVID-virus. 19.

The sugar giant recouped an after-tax profit of $ 116.7 million, after suffering a loss of $ 81.4 million in the same period previously.

The results demonstrated the effectiveness of an arrangement scheme currently underway at starafrica.

The program came into effect after the Zimbabwe Stock Exchange-listed operation struggled in the wake of the hyperinflationary scourge of 2008, with inefficiencies at its decades-old factories amplifying the turmoil.

Last week, starafrica said 99.9% of creditors had been repaid under the deal.

“A notable increase in turnover was noted during the period under review, from $ 2.84 billion to $ 3.92 billion, resulting in an increase of 38%. The escalation was largely supported by increased throughput at Goldstar Sugars and strong demand for all of the group’s products which remained high during the period under review.

The improvement in revenue is also a recovery from the depressed performance that had been caused by a three-week shutdown of operations between July and August 2020 due to a COVID-19 incident that had occurred at the refinery. from Harare, ”said starafrica.

Group profit before interest, taxes, depreciation and amortization increased 20% to $ 579.68 million, compared to $ 482.10 million recorded in the same period of the previous year. The improvement in performance is largely due to capital investments and the equipment maintenance plan.

At Country Choice Foods, one of the company’s key units, products continued to dominate the market, with sales volumes up 27% from the same period a year earlier.

The associated company, Tongaat Hulett Botswana reported an after-tax profit of $ 91.1 million.

Starafrica earned $ 30.4 million after converting profits into local currency.

The real estate business recorded a slight increase in revenue amounting to $ 12.57 million compared to $ 12.41 million in the same period last year.

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Rachel J. Bradford