Hippo Valley Estates places a high focus on sustainability.
CLOUDINE MATOLA
Hippo Valley Estates Limited, a publicly traded sugarcane producer, says its top priority is to preserve business sustainability through risk mitigation and operational adaptability for commercial viability, Business Times can report.
It comes at a time when Zimbabwe’s business operating environment is characterised by extremely volatile circumstances.
Consequently, most companies in Zimbabwe have shifted into survival mode, largely as a result of a turbulent economic environment that has seen some companies scaling down operations while others are teetering on the brink of collapse.
“Looking ahead, directors and management remain focused on preserving business sustainability through designing plans to maximise on business opportunities and contingencies to mitigate the negative impact of the business environment and entrenching operational agility and flexibility,” Hippo Valley Estates said.
It continued: “The year (2024) was not plain sailing for the sugar industry mainly owing to lost revenue in the local market which generates higher returns compared to the export market.”
In addition, Hippo Valley Estates was impacted by unscheduled mill stoppages, decline in yields as well as increase in the minimum wage.
Nonetheless, Hippo Valley Estates anticipates a 4% increase in production for the 2024–2025 season because it expects to harvest 945 471 tons of cane and get 739 329 tons from private growers.
The company also projects that milling efficiencies will recover on the back of improved cane quality and following the successful completion of the requisite annual maintenance program.
As a result, production is expected to hit 202 860 tonnes of sugar at a cane to sugar ratio of 8.26.
In its financial results for the 12 months to March 31, 2024, Hippo Valley Estates reported a 75% revenue growth to ZWG7. 51bn from ZWG4.3bn reported in the prior comparative period.
Cost of sales in the period under review increased by 133% to ZWG6 .068bn from ZWG2.601bn reported in the previous year.
Profit for Hippo Valley increased to ZWG527.5m in the period under review from ZWG521.4m achieved in the previous year.
