Ariston bullish about export growth
LIVINGSTONE MARUFU
Listed agro-industrial concern, Ariston Holdings Limited, has expressed optimism its export volumes would increase this year on the back of a good rainy season, Business Times can report.
Currently, over 65% of Ariston’s products are exported to Europe, the United States of America and increasingly to India and Africa. The company expects exports to go up this financial year.
“From the onset of the rainy season up to now, the rains have been good and it has improved our yields significantly. When our output goes up this means our export volumes will go up as well,” Ariston spokesperson Brian Kagondo told Business Times.
He said due to economic challenges and volatility of the local currency the group took an export-oriented path for the company to remain viable.
In its trading update for the first quarter to December 31, 2020, Ariston said the high demand for export tea and an increase in both export and local tea sales stimulated the company’s performance.
Revenue for the company increased 98% in inflation-adjusted terms, owing to the sharp increase in sales of tea, fruit and maize.
The demand for export tea improved resulting in the group’s stockholdings being depleted and there was marginal improvement in selling prices with local tea sales also increasing compared to prior year.
During the period under review, tea production volumes increased to 941 tonnes during the first quarter from 821 tonnes due to more favourable weather patterns compared to prior years.
Macadamia, fruit, poultry and maize sales were in line with both the prior period and the production volumes.
There was a 65 % surge in banana production alongside good yields on other crops on the backdrop of a good rainy season.
The fruit category comprises stone fruit and bananas performed well due to the wetter season experienced in 2021 than in prior year.
The favourable weather patterns allowed for the production of 32 tonnes of commercial maize during the first quarter.
The agricultural enterprise operates in diverse markets that range from tea, macadamia nuts, horticulture and deciduous fruits to fish farming, beef cattle and poultry.
Deciduous fruits include bananas, apples and peaches; while staple crops include potatoes, tomatoes, peas, and maize and soya beans.
Ariston operates six strategic business units across Zimbabwe which includes the Blended Tea Factory, Claremont, Clearwater, Kent, Roscommon and Southdowns Estates with all units expected to perform better this year.
