Sugar concern, Star Africa Corporation Limited experienced a depressed first half ended 30 September 2023.
The company released its Reviewed Interim Abridged Financial Results for the period ended 30 September 2023.
Despite revenue going up by 35% from ZWL73.52 billion to ZWL99.41 billion, volumes and profit were in the negative.
The depressed volumes were attributed to a three-month-long shutdown, caused by an upward price review of raw sugar as well as the decision by the government to allow sugar imports duty free, following promulgation of Statutory Instrument 80 of 2023 (SI 80 of 2023).
Star Africa shut down its Goldstar Sugars plant after disagreement with the sole local supplier of raw sugar over the increase in its prices which made the Company’s products uncompetitive relative to the cheaper imports.
As a result, the company experienced depressed sales within this period.
The operating profit for the group declined by 723%, from ZWL4.73 billion in the prior year comparative period to negative ZW29.45 billion for the six months ended 30 September 2023.
Volumes at Goldstar Sugars declined by 41% compared to prior period last year while Country Choice Foods (CCF) also experienced a decline in sales volumes of sugar specialties of 46% during the same period due to the erratic supply of raw materials from GSS.
The company advised that Mr. Aldo J. Musemburi resigned from the position of Company Secretary, with effect from 31 December 2023, due to retirement. He had been with the company for 12 years and 4 months. Under his leadership, the company successfully implemented the Secondary Scheme of Arrangement with creditors and navigated through the challenges posed by the COVID-19 pandemic.
The company thanked Mr Musemburi for his service and wishes him well for the future.
A substantive Company Secretary will be appointed in due course. In the interim, the Finance Director of the company, Mr. Formai M. Myambuki, will perform the duties of Company Secretary of the Company.
The future is bright as government has reinstated the suspended duty on basic commodities from the 31st of January 2024.
The company has put in place measure to return to profitability as all major challenges experienced in the half year were of a short-term nature.
The industry has sufficient production capacity and capability to avail good quality sugar in sufficient quantities to meet the country’s requirements.
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