Ariston ramps up solar drive to cut costs, boost resilience

BUSINESS REPORTER

Ariston Holdings Limited, a publicly traded agricultural group, is accelerating investments in solar energy infrastructure across its estates as it moves to slash operating costs, reduce reliance on diesel generators and strengthen energy security.

At the centre of the strategy is the group’s flagship Southdown Estate solar plant, which has a generation capacity of 1,2MW and is already delivering measurable cost and efficiency gains.

The installation has emerged as a game-changer for the estate, significantly lowering dependence on generators, previously a major cost centre,while improving energy reliability and reducing the group’s carbon footprint.

“The group will continue to expand solar energy infrastructure across its estates, building on the success of the Southdown installation, to reduce energy costs and improve reliability,” company secretary Anesu Museta said.

“Energy resilience remains a strategic priority, with solar infrastructure playing an increasingly important role in supporting reliable processing capacity and improved product quality across macadamia operations.”

Commissioned in 2023, the Southdown solar plant is integrated into the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) grid through a net metering arrangement, enabling the estate to optimise power usage while feeding excess generation back into the grid.

Museta said the group is actively evaluating additional solar installations across its estates as part of a broader long-term plan to enhance operational efficiency and mitigate energy-related risks.

Ariston’s solar push reflects a wider shift among Zimbabwean corporates toward renewable energy, driven by persistent power shortages and rising electricity costs. Companies such as Caledonia Mining Corporation, Schweppes Zimbabwe, Econet Wireless Zimbabwe and Tongaat Hulett have all invested heavily in solar solutions to secure stable and sustainable power supplies.

The government has also stepped up efforts to close the country’s energy deficit by issuing independent power producer licences, with ambitions to transform Zimbabwe into a net electricity exporter capable of supplying surplus power to regional markets.

Despite the strategic progress on energy, Ariston reported a difficult first quarter, weighed down by high input costs, adverse weather conditions and ongoing restructuring initiatives.

Museta said the group continued to implement operational optimisation measures focused on improving production efficiency, tightening cost management and scaling technology-driven farming systems.

Revenue for the period fell 58% compared to the prior year, reflecting both restructuring disruptions and weather-related setbacks earlier in the season.

Tea production was particularly hard hit, declining 77% to 111 tonnes from 496 tonnes in the comparable period.

“Tea harvesting activity was temporarily affected by intensive rainfall in the Chipinge region, as well as working capital constraints which delayed certain critical farming activities,” Museta said.

“Field conditions have since improved and the estates are positioned to return to normal harvesting cycles as weather patterns stabilise.”

The group has since secured mechanised plucking equipment, which is expected to significantly boost harvesting capacity from the second quarter.

Tea sales volumes also dropped 67% to 125 tonnes, in line with lower output, although average selling prices on the domestic market remained stable.

Macadamia operations, a key growth pillar for Ariston, are showing encouraging signs despite a slower start to the season.

Harvesting began in March, with early volumes largely comprising nut drop—typically an indicator of crop development.

Lower early volumes are considered positive, as they suggest a higher proportion of nuts remain on trees to mature fully. Early indications point to a strong nut set comparable to last year’s performance.

Macadamia sales volumes for the quarter declined 19% to 52 tonnes from 64 tonnes in the prior period, but global demand remains firm, with export prices trending above last year’s levels.

The group is actively engaging international buyers to secure forward contracts, a move expected to improve revenue visibility and bolster foreign currency inflows.

Beyond its core crops, Ariston continues to diversify revenue streams through bananas, sugar beans and commercial maize production.

Volumes from these segments rose 8% during the quarter, driven largely by improved banana yields supported by enhanced agronomic practices and estate management interventions.

Over 250 hectares of row crops have been planted this season, with early assessments pointing to strong yield potential and a growing contribution to revenue stability.

In the poultry segment, no placements were recorded during the quarter as the group undertook upgrades to its poultry house heating systems—part of a broader effort to improve production efficiency.

Looking ahead, Ariston expects its ongoing restructuring and efficiency initiatives to begin yielding tangible results by the third quarter, supporting a return to profitability and margin expansion.

“Technology-enabled agriculture and value-added processing initiatives are being scaled to strengthen competitiveness and protect margins in a challenging domestic environment,” Museta said.

The board remains confident that the operational adjustments implemented during the quarter are stabilising production systems and will underpin improved performance in the periods ahead.

With weather conditions normalising, tea estates are expected to resume regular harvesting cycles, while macadamia orchards are poised for a strong main harvest.

Despite persistent macroeconomic pressures and liquidity constraints, Ariston’s focus on cost optimisation, disciplined financial management and increased use of US dollar-based transactions is expected to provide a solid platform for sustainable growth.

Crucially, its expanding solar footprint positions the group not only to navigate Zimbabwe’s energy challenges, but to turn power reliability into a competitive advantage in an increasingly volatile operating environment.