Star Africa Corporation Limited has posted a return to profitability for the year ended 31 March 2026, reversing a USD4.8 million loss to a USD1.4 million profit after tax, as aggressive cost containment and reduced foreign exchange losses outweighed a 9% decline in revenue.
The performance comes against a stronger macroeconomic backdrop following Zimbabwe’s recovery from the 2024 El Niño drought, with the Group benefiting from currency stability, firmer demand in the second half, and tighter control of overheads.
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Book NowThe company noted that Zimbabwe’s economy rebounded with estimated GDP growth of 6.6% in 2025, supported by improved rainfall, stable currency conditions, and favourable precious metals prices.
The Reserve Bank of Zimbabwe maintained a tight monetary stance to anchor the Zimbabwe Gold currency introduced in 2024, which helped deliver single-digit inflation and a stable exchange rate — conditions the Board said were conducive to positive business performance.
However, formal manufacturers continue to face structural headwinds. Star Africa cited the high level of market informalisation, with 76% of operational businesses unregistered according to the National Consensus Survey, alongside ongoing policy engagements with Government on Value Added Tax (VAT) classification of white sugar, the sugar tax, and the regulatory framework for sugar substitutes.
Star Africa changed its functional and reporting currency from Zimbabwe Dollars to United States Dollars with effect from 1 April 2025, with comparatives restated accordingly.
The company’s turnover declined 9% to USD58.1 million from USD63.9 million in FY2025, reflecting strategic price reductions implemented at the start of the year to defend market share against imports.
Despite the softer top line, the Group delivered a marked operational turnaround. An operating loss of USD3.0 million in FY2025 converted to an operating profit of USD1.1 million, driven by lower foreign exchange losses and administrative cost savings that offset fair value losses in the investment property portfolio.
Profit after tax rebounded to USD1.4 million from a USD4.8 million loss previously. The balance sheet was impacted by write-downs to Property, Plant and Equipment at USD11.79 million and Investment Property at USD6.53 million, largely due to the currency conversion. Total assets stood at USD36.47 million versus USD31.71 million in the prior year.
Working capital saw trade receivables rise to USD8.96 million, matched by a corresponding increase in payables, reflecting deliberate efforts to defend the local market against imported sugar. Cash and cash equivalents improved to USD1.69 million from USD0.13 million. The Board resolved not to declare a dividend in order to preserve working capital.
Goldstar Sugars [GSS], the Group’s sugar refining arm, held volumes broadly flat at 59,596 tonnes compared to 59,613 tonnes in FY2025, with production at 60,819 tonnes versus 60,212 tonnes previously.
Demand was subdued in the first half but recovered strongly after December, led by beverage and confectionery customers benefiting from higher disposable incomes, mining sector growth, and increased diaspora remittances. The unit’s early-year pricing initiative to improve competitiveness against imports delivered results, contributing to lower import penetration. GSS retained key international certifications including The Coca-Cola Company and FSSC 22000, and continues to pursue regional export opportunities to lift capacity utilisation.
Country Choice Foods [CCF] was the standout performer. Specialties volumes jumped 63% to 2,311 tonnes from 1,416 tonnes, supported by distribution model improvements and rising incomes. Management is now focused on further product diversification to sustain momentum, even as it counters grey imports through competitive pricing and responsiveness.
The Properties and Investments segment posted 9% rental income growth to USD389,264, aided by rental adjustments and tenant retention, with self-funded refurbishments ongoing. The Group’s share of profit from its associate rose 94% to USD655,422 on higher turnover and tighter cost control.
Looking ahead, the company forecasts volume growth in FY2027, underpinned by operational efficiencies from reorganisation and retooling that have improved domestic competitiveness. Regional export opportunities are being evaluated, with execution to be supported by a favourable cost structure.
The company said the trajectory is supported by currency stability, low inflation, and rising foreign currency inflows, with sustained demand expected from agriculture and mining. The company commended Government efforts to curb illicit imports to level the playing field for tax-compliant businesses.
Risks remain, including geopolitical tensions that drove fuel prices higher in late March 2026, and outstanding policy issues on VAT, sugar tax, and substitutes. Maintaining strict cost discipline is a core priority to remain competitive, the company said.
Star Africa continues to leverage a stable macro environment to rebuild margins, defend local market share, and position for regional growth.
