Tinashe Makichi
HIPPO Valley’s operating profit for the year to March 31 2019 rose to ZWL$113.6m from ZWL$11.1 recorded in prior buoyed by revenue growth, the company announced.
The company’s revenue was up 54 percent to ZWL$244.9m driven by increased sugar production and the positive impact of domestic market sugar price adjustments prompted by cost push inflation experienced in the country.
In its delayed financial results Hippo Valley chief executive officer, Aiden Mhere said sugar production increased by 21% during the period under review.
Hippo Valley’s operating cash inflow was ZWL$21.1m during the reviewed period from ZWL$29.6m, reflecting a 28% decrease as a result of an increase in cash absorbed in working capital, according to Mhere.
Cash generated from operations amounted to ZWL$37,2m from ZWL$16,6m, while working capital decreased by ZWL$16,1 million compared to a ZWL$13,0m in the prior year.
Overall, after taking into account capital expenditure and root replanting costs totaled ZWL$9,8m from ZWL$17,8m.
Finance costs stood at ZWL$6.7m. This was commensurate with the level of borrowings over the period under review, all of which were unsecured at an average interest rate of 6,43 percent.
An attributable profit of ZWL$38,2c per share was achieved for the year compared to ZWL$ 2,8 cents per share realised in the prior year.
Going forward, Mhere said the industry will continue to expand its sugar cane production ,through both vertical and horizontal growth, and supply to the sugar mills, aimed at utilising available total milling capacity.
Of note, under this initiative is the Kilimanjaro Project where a total of 4 000 hectares is targeted to be developed and work is already underway.
