LIVINGSTONE MARUFU
Listed agro-industrial concern, Ariston Holdings, has reported a two-fold increase in revenue in the first quarter (Q1) to December 31, 2020, largely on the back of uptick in demand for its tea in export and local markets.
Company secretary, Rufaro Chinamo, said tea volumes increased to 941 tonnes during the reviewed period from 821 tonnes in prior comparative period due to more favourable weather patterns.
This resulted in the company’s top line increasing 98% in the period under review.
The group also closed the fourth quarter of 2020 with substantial tea stocks.
She said good rainfall has helped the company’s production figures to go up in almost all fruit and crop categories.
“Revenue for the three months ended December 31 2020 increased by 98% in inflation adjusted terms, owing to the sharp increase in sales of tea, fruit and maize.
“In the first quarter of 2021 demand for export tea improved resulting in the group’s stockholdings being depleted. There was marginal improvement in selling prices with local tea sales also increased compared to prior year,” Chinamo said.
Sales of macadamia, fruit, poultry and maize were in line with the prior period and the production volumes.
The harvesting of mature macadamia which began in March, though lower is a good indicator, allowing greater production at maturity, Chinamo said.
Ariston also registered 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 wetter season experienced in 2021 than in prior year, the company said.
Chinamo said the favourable weather patterns allowed for the production of 32 tonnes of commercial maize during the first quarter.
The group’s revenue remains predominantly foreign currency denominated.
Ariston has 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 than last year.
