Listed agricultural concern Ariston Holdings Limited says investments in solar energy have led to the group’s financial savings and are also in line with its quest for clean energy sources.
Group chairman Alexander Jongwe, in a statement of financials for the year ended September 30, 2023, said during the period under review the biggest investment made was into a solar plant located at Southdown Estate, Chipinge.
“The plant is integrated into Zimbabwe Electricity, Transmission, and Distribution Company (ZETDC) and is on net metering.
“The plant came with a 1.2 megawatt storage facility as the tea factories operate throughout the day and night,” he said.
Jongwe added that the investment in the plant not only leads to financial savings for the group, but is also in line with the group’s strategy of safeguarding and enhancing environmental resources and processes, as this is a renewable energy source.
By harnessing the power of the sun, the group can tap into a sustainable and renewable energy source, reducing its reliance on conventional power systems.
This transition to solar energy is anticipated to enhance operational efficiency, optimise resource allocation, and potentially lower production costs.
Mr Jongwe said the expansion of macadamia orchards continued in the current year, and road rehabilitations were undertaken at all the Chipinge and Chimanimani operations to reduce repairs and maintenance costs arising from bad road networks.
For the period under review, the group swung into a loss of $33 billion from a profit of $5,9 billion in the previous year, mainly driven by unrealised exchange losses arising from liabilities denominated in US dollars.
According to the group, despite challenges in the market, the company reported a 15 percent increase in revenue, totalling $35,479 billion compared to the prior year, with the growth attributed to a rise in tea prices driven by improvements in quality, offsetting the decline in macadamia nut prices.
Joint ventures played a pivotal role in contributing positively to the group, with a 169 percent increase in the share of profits for the year.
However, inflation-adjusted interest expenses surged by 99 percent to $3,2 billion, primarily due to increased borrowings during the reporting period.
A revaluation of the group’s assets, including buildings, leasehold improvements, plants, and machinery, resulted in a revaluation surplus of $26,5 billion as of September 30, 2023.
The operational landscape for Ariston’s tea segment underwent a strategic shift as the company consolidated tea processing for two of its three estates into one factory.
“The equipment in this factory was upgraded to ensure capacity for the green leaf from both estates and to improve the quality and quantity of top export grades.
This decision, coupled with the commissioning of a solar generating plant, was aimed at improving processing efficiency and mitigating power outages.
“This resulted in savings as envisaged, but the savings will be more apparent in future years,” said Mr Jongwe.
Tea volumes experienced a 34 percent decline, largely due to the pruning of low-yielding gardens. However, a focus on quality led to a 68 percent increase in the average selling price.
Macadamia production volumes rose by 23 percent, but oversupply challenges persisted, causing a 40 percent decline in the average selling price.
The “Other Products” category, including potatoes, commercial maize, seed maize, soya beans, and bananas, contributed 19 percent to the group’s turnover, showcasing the importance of product diversification.
Herald
